Guest Editor | Simon Orbell, Smartmove Mortgage Advisors

27 May 2021

We are now seeing some fixed rates starting to creep upwards. That being said, fixed rates are still below most variable rates and there are still some opportunities in the market to lock in 3 or 4 year fixed rates under 2 per cent. Our expectation is that these fixed rates will ever so slightly creep up in the coming months (but will remain low relatively speaking).

We are not expecting any changes to variable rates in the short term. This is because the RBA has made it very clear that they don’t expect the cash rate to move from 0.1 per cent until at least 2023/2024. With some of the “Fear Of Missing Out” appearing to have left the property market, the likelihood of the regulators introducing macroprudential measures (which is when regulators bring in policies to reduce the flow of lending into the economy – something we saw introduced a few years back when the Australian Prudential Regulation Authority mandated that the banks could only write a certain amount of investment or interest only mortgages) is becoming less and less likely.

As we have previously mentioned, since January 1 this year we are governed by the “Best Interests Duty”. As a team, we have always worked in the best interests of our clients however it is now legislated across the industry, which is positive news for everyone – albeit a little more paperwork for us!

For those in the market right now, the message is that the banks are dealing with a high level of demand and some applications are taking up to six weeks just to process (this can be as short as a few days if you have speed as a key requirement and you choose the right lender). Many banks are implementing a range of ways to speed up this process, however in the meantime (until these measures have some impact) you are best to chat to an expert mortgage broker to work around these hurdles and get your application approved in the most efficient manner.

If you would like to chat with Simon about your next property transaction, please get in touch on 0403 403 899 or email [email protected].