In a recent report, Australian Finance Group (AFG) released numbers showing a distinct improvement in the home loan sector for the first quarter of the 2020 financial year, with an increase in lodgments across all Australian states.
The overall figures showed growth of 11% when comparing quarter one of the 2020 financial year to the same quarter of the previous turnaround year. While the Eastern States saw considerable growth individually, there were still encouraging signs in our own West Australian market. AFG reported that WA saw a growth of 4% when compared to the previous year’s same quarter. While this isn’t as large as our Easter States counterparts, there is great growth across the WA economy, as a whole, to come. This coupled with the current financial markets, can provide the perfect platform for growth in the property market.
When speaking with Gill McLean, General Manager of Capita Finance, she said “we can take great encouragement out of the overall spike in lodgements and growing market of the Eastern States. This positivity will hopefully cause a shift that will make its way through to the West Australian market, having said that Capita brokers continue to outperform the market.
These numbers could be the start of a return to normal growth, with application numbers growing significantly since the end of the 2019 financial year. With the combination of the Reserve Bank’s actions and increased pressure for the Banks to follow through and pass down rate cuts, as well as a shift in sentiment around the Australian property market, we could be seeing the eventual turnaround.
With the Cash Rate now sitting at 0.75, there is expectation at all levels for the banks to be doing all they can to encourage buyer behaviour and opinion of the market. With growing pressure for banks to drop their interest rates to be more in line with market expectations, we have seen several of the big and small banks making changes. When asked about the current interest rates in relation to the Cash Rate cut, Gill McLean said “the benefit of a broker, their network, resources and expertise is that they source the most suitable loan option for you. Each loan and applicant is different and not necessarily suited to the institution they current bank with, we work to find the most appropriate option for their goals and expectations”.
The recent reports have shown positivity on the rise and the market is hopeful to see those numbers reach further heights across the next quarter and beyond. If you are looking to make the most of the current conditions, speak with a Capita Broker today to discover what opportunities, savings and growth could await you.
Financial Advice Disclaimer: This information is general in nature. Mortgage brokers do not provide financial advice. Clients seeking financial advice will be referred to a qualified financial planner.