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Over the last 12 to 18 months, we’ve seen an unprecedented level of growth and rapid buyer activity in the property market in most parts of the country.
As brokers we have seen many of our clients come home from auctions shattered by the price achieved, that was in some cases several hundred thousand dollars above the expectation they had been given, and the limit they could bid to.
Property stock has been drip feeding onto the market, particularly during lock down affected periods, where vendors felt they would improve their reach with a ’real’ open home, and have more bidding competition at an onsite live auction.
Many people think that these days, you don’t need to go anywhere else but realestate.com or domain to see all the properties available. Not so!
The two most important things we’ve been able to do for our clients, to counter some of these challenges, has been to:
It’s more that just finding properties too. A good buyers agent has the ability to influence the path an auction may take due to their skills managing the size and timing of bids, and their vast experiencing negotiating an outcome.
One such case are our clients Michael and Amanda.
They were introduced to us by Rebecca Hall of Hallmarq Properties, a professional couple looking to restructure their existing home into an investment property, and at the same time draw some equity to contribute to their planned purchase of a new home for their growing family, with their second child due in September.
They were getting the run around from a bank and needed assistance to get finance ready to be in a position to move quickly when Rebecca found them a property.
They were keen to purchase a new home for their growing family, with child no 2 due in only a few months. They had approached a bank who were floundering trying to work out solutions that would work in line with Amanda’s pending leave when the baby was born.
Having dealt with many similar situations we knew which lenders would accommodate the situation, and provide an approval with sufficient comfort for them to move quickly for the right opportunity.
With Rebecca on the case, that opportunity was soon in front of them. And with Rebecca’s negotiation skills, they were able to secure a great purchase ahead of other interested parties.
Having your finance and property specialists working hand in hand on your goals is a great partnership to have your side, particular in the hot market we are currently seeing
And after a challenging 12 months we are pleased that quite a number of our clients are very happily spending their first year in their new home thanks to the great collaborative work of their finance and property partners.
Home loans are changing with the times. You can now get home loans in a variety of different forms, all with different facilities and features. Deciding which home loan suits your needs can be quite daunting and that’s where sound advice from your professional credit adviser can be invaluable.
For a broker, a large proportion of our work and time is spent in sourcing the provider/s from our panel who have the suitable credit policy and appetite for the transaction – and complementing this with the appropriate structure and competitive rates for the client.
To do this we take a look at five key criteria providers are looking for when assessing applications. Given all these changes, it is timely to share what we are seeing from a lending assessment perspective and how to ensure clients are finance ready!
Whether an applicant is self-employed or PAYG, assessors are looking to see a secure, consistent and stable income stream. Essentially, they want to know the applicant can repay the money they have borrowed.
Providers are looking to see that a client can save money and that their income exceeds their living expenses – again they want to know that the applicant has the ability to repay the loan and create surplus savings.
Providers and assessors are taking a much more forensic look at living expenses to understand the applicant’s cost of living – both fixed expenses as well as lifestyle.
Lenders will consider other liabilities the applicant needs to service. This will include personal loans, asset finance and credit card limits, as well as for example an outstanding HELP debt owing.
Banks use a credit rating system that includes assessing a client’s credit score when processing a loan application. A client’s credit score is based on how many enquiries they have made with credit providers and how good they are at paying bills on time.
In summary, all lenders are wanting to ensure ongoing income streams and like stability. As a broker, we ensure we discuss with our clients early on what credit assessors are looking for and what it means to be finance ready.
Anthony Landahl | Equilibria Finance
This is for general information purposes only and does not constitute advice. With all of these options there are a number of considerations outside the scope of what is covered in this article that you need to understand to ensure your personal circumstances are taken into consideration.
