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The Reserve Bank’s decision to cut the official cash rate has proven very beneficial for brokers, with the number of home buyer enquiries surging over the last week.
According to new data from Mortgage Choice, potential buyers’ interest in their borrowing capacity surged 357 per cent in one week.
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Mortgage Choice spokesperson Kristy Sheppard said the difference the rate cut made to their online calculator hits was impressive.
“It is terrific to see potential borrowers are on the ball with market condition improvements, already actively researching their new financial potential,” she said.
“It looks like the recent interest rate drop was the signal many buyers were waiting for to spur their property purchase plan into action. I’d say a number of them are especially eager to make a move now to take advantage of grants and concessions due to expire early in the new year.
“Lenders are poised to battle each other to attract and retain these market entrants, offering appealing interest rate discounts and other incentives. However, borrowers may be surprised to hear that despite lenders’ willingness to loan money, their approval process still involves much more than accepting a deposit from someone who can afford repayments.
“Applicants are required to have a healthy income and financial history, limited debt, a steady employment record and realistic expectations about their borrowing capacity. Attempting to cutting corners on these aspects of your property purchase will only hinder your hopes at loan approval.”
