Author: Bob Lowcock

Rate cuts will help improving buyer sentiment

Central Coast Lending Manager Bob Lowcock writes that The Greater’s recent cuts to its home loan rates will be good news to the increasing number of more optimistic home buyers in the marketplace.

A recent survey shows Australians are more confident about buying a house or apartment now than they were six months ago.

The Commonwealth Bank / Mortgage & Finance Association of Australia Home Finance Index shows that Australian households are at their highest levels of financial confidence since May 2011.

The survey of 1,447 people found 51.7 per cent of home buyers believe that now is a good time to buy a new home, compared with 36.1 per cent six months ago. Fewer respondents feel financially worse off in March 2012 (35.1 per cent) compared with 38.8 per cent six months ago.

I’d agree with the survey authors’ report that flat property prices, high rents, and lower interest rates are fuelling the improvement in home buyers' optimism.

The Greater Building Society’s recent cuts to home loan rates will make it easier for those people thinking of buying a home or apartment even more affordable.

The Greater cut its Standard Variable (Getaways) home loan to 6.60% p.a. and its Basic Variable (Great Rate) home loan to 6.24% p.a.

Last week we cut 15 points off key three year loans. Our 3 year fixed packaged (Ultimate) home loan is just 5.79% p.a, making it the lowest three year home loan rate in Australia at the time. The three year Basic (Great Rate) home loan is 5.84% p.a.