Monday 1st March 2021

Home Buyers: Looking to Purchase or Upgrade Home Loan in 2021?

Home Buyers: Looking to Purchase or Upgrade Home Loan in 2021?

In 2021, many first or second home buyers are looking to purchase a new home loan or upgrade from their current home situation. These are major financial decisions that require lots of calculated research and future planning.

2021 – A Good Time for Purchasing & Upgrading Home Loans?

There has never been a better opportunity to consider purchasing or upgrading your home loan for this year. A combination of record-low interest rates, government stimulus packages and the COVID-19 pandemic has created ripe conditions for a surging property market in 2021. The ABS reported that home loan lending has increased by 25% since the beginning of last year!

Notable government subsidies have contributed to this property market growth, making home loans much more attractive for many first and second-home buyers. This includes HomeBuilder, which grants $25,000 to eligible applicants who spend $150-750K on a home renovation or a new build. Since October, this initiative has received over 11,000 applications! And the good news is that the Federal Government has recently extended the HomeBuilder program to March 31st 2021, expecting to see 15,000 homes approved.

The First Home Loan Deposit Scheme also enables first home buyers to secure a guarantee to construct a new home or purchase a newly built property with a deposit as small as 5 per cent. Another perk is that they also do not have to pay for the lenders’ mortgage insurance (LMI), which is usually charged for deposits below 20%. More than 20 banks, lenders and financial institutions can accept applications that enable buyers to secure a mortgage.

Seeking a Home Loan in 2021? Here’s how Mortgage Brokers Can Help! 

To help kickstart your dream homeownership goals for the year, our mortgage brokers can help you examine the different home loan options available from over 50 lenders. For first home buyers particularly, brokers can explain the loan application process and required documentation. That way, you are sufficiently prepared for all the associated costs, disbursements and fees, while providing you with a written schedule.

Our mortgage brokers will negotiate with these established lenders to find the best deal tailored to your current (and future) financial situation, while communicating with you throughout the process, from application to approval, in a timely and efficient manner. This includes First Home Buyer Loans, refinancing home loans, construction loans (for home extensions or renovations), and debt consolidation.

Looking to purchase or upgrade a home loan? Contact our team today for more information!