The greatest hobby for an Australian is real estate investment and evaluating the property market. You will find them keep researching on the internet about the subject often. They invest in primary and secondary properties to secure the future, as their investment brings substantial returns: No wonder why the Australian mortgage industry is booming today, the most visible growth on post-pandemic period.
There is a sharp 10% increase in growth in the Q1 of 2023 (In comparison to Q1 of 2022) in the total value of the loans extended by Australian banks and non-banking financial lenders, and the market is very optimistic in its outlook. The primary reasons contributing to the growth factor are reasonably strong economic GDP (13th largest in the world ranking), meagre unemployment rate and high labor wages, all having a collective effect with more money with the ordinary citizen to borrow loans from the banks and buy properties. The other key factor is the low-interest rate (0.1%), kept by the federal bank since COVID-19, playing a catalytic role in the high mortgage demand.
Overall, the growth in the mortgage sector has a favourable implication for the Australian economy. When the typical borrower makes their financial commitments to banks by taking housing loans, the banking sector also grows, which means more cash flows and liquidity in the market.
Business and the Industry are experiencing the benefits of economic recovery from the COVID-19 pandemic, due to growing business confidence, buoyant consumer attitude, and flourishing of residential property market. In the next few years, Mortgage Brokers in Australia are expected to expand their business. Even though the percentage of mortgages obtained through brokers is expected to increase, housing loan rates are likely to climb, which may deter some property investors from entering the market. Mortgage payments will also likely increase in the next few years. Mortgage payments for first-time homebuyers who took out huge loans during the boom may rise.
Getting Mortgage in Australia – The Business Model
If you intend to invest in property or buy your home in Australia, you naturally need a mortgage. Getting a mortgage is complex, but there are ways to tackle the issue.
Always consult a professional mortgage consultant who understands the subjects well and has a network of lenders. Your primary step is to get pre-approved for a mortgage from a lender offering the best deal. It means that a lender agrees to lend you some money before you start looking at potential choices of homes. It would give you a reasonably good idea of how much you can loan amount you can afford, and it will make the home-buying process much faster.
Every pre-approved mortgage has technicalities and documentation processes. And your lender asks for information about your income, expenses, references, and assets to calculate your debt-to-income ratio and credit score. These two factors collectively determine how much money you can borrow.
Once you have a pre-approved mortgage, you may start looking at properties, shortlist the one you like and make the offer. If everything is approved, you can sign the mortgage documents and be the homeowner. Once the seller accepts your final bid, you must undergo the mortgage approval process. It may involve a lot of documentation and financial scrutiny; your lender will ensure you can afford the monthly repayments, before the final consent.
MEDVISOR Australia is a professional mortgage broker with an excellent track record in the trade. MEDVISOR is a popular name amongst the entire medical fraternity, assisting healthcare professionals in finding a loan that fits their needs. The company helps you get the best possible mortgage deal as it enjoys access to a network of lenders. MEDVISOR also provides free consultations to get started without any obligation.
If you are planning for your new home in Australia, contact MEDVISOR Australia today. We help you get the right mortgage to make your dream a reality.
The Australian mortgage industry is booming, driving economic growth. Suppose you are thinking about buying a home and getting a mortgage. MEDVISOR Australia can help you get the best possible mortgage deal. Contact us today to get started.