The return of the owner occupier: spring buying predictions
Fresh real estate listings, softer investor demand together with competitive owner-occupier lending rates and new first home buyer incentives will present favourable opportunities for owner occupiers this spring, predicts home loan lender, ME.
“When September hits, the property market blooms with more listings and plenty of Australians rush in ready to sell and buy,” said ME Head of Home Loans, Patrick Nolan.“But this season will be different from previous years’ in that we won’t see as much investor activity due to APRA regulations curbing the amount of investor and interest-only loans banks can lend. As a consequence, owner-occupiers will experience less competition from investors and benefit from competitive lending rates.“First home buyers will be particularly motivated by recently introduced incentives in some parts of the country. We’ve already received noticeable interest from first home buyers.
“Regardless of being a first home buyer or refinancer, owner-occupiers stand to gain from greater competition in the principal and interest lending space. This is because many banks view this segment as an opportunity to grow their business, following caps among investor and interest-only lending.
“First home buyers with a deposit exceeding 20 per cent will benefit from better loan deals as banks view these customers as lower risk.”
Currently ME’s variable home loan and 2 year fixed home loan for owner occupiers are among the cheapest in the market.
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