Great news for those wishing to enter the property market, or for those wanting to refinance .
What Is An Assessment Rate?
When you apply for a home loan, whether to purchase or refinance, each lender will look at your income and expenses to determine how much you can borrow. However, they all have their own unique formulas for calculating this, and it is never as simple as minusing your actual expenses from your actual income.
Up until recently, most lenders required you to prove that you can afford a home loan with an interest rate of at least 7.25% or even higher, even if your interest rate is only 3.5%!
Recent changes to legislation have seen this buffer reduced dramatically and at present, many lenders will need you to prove that you can afford your home loan if interest rates rise by 2.5%, or at a rate of at least 5.25% or higher, as this again varies amongst lenders.
What Does This Mean For You?
This means that borrowers who may have previously been unable to afford the home loan they desired, now have the opportunity to revisit how much they can afford for a home loan. As this will have improved.
It may be easier to get into the property market with the assessment rates being lowered.
Be Savvy – apply right the first time!
If you’ve been waiting to purchase or refinance and have been unsure about your borrowing capacity, now is the time to revisit this.
At Bee Finance Savvy, we have an extensive lender panel, that allows us to provide our clients with flexibility. We
can match our clients with lenders who are accomodating, and match you with a lender that will more suitably meet your needs.
If you’d like to find out more, why not take advantage of our obligation free consult service. All you have to do is get in touch with one of our Sutherland Shire based brokers. You can call Desiree or one of the team on 1300 140 554. We can also be reached at firstname.lastname@example.org . You can also fill out the contact us form on this site.
If you’d like to hear from just some of our satisfied customers, take a look at our reviews on WOMO https://www.wordofmouth.com.au/reviews/bee-finance-savvy-miranda