Dive deep into the Australian mortgage market in this insightful video! We break down the major changes initiated by the National Australia Bank (NAB), the Commonwealth Bank (CBA) and others as they adapt to the rapidly evolving financial landscape. Learn about rate hikes, cashback cuts, the strategic battle for market share, and how the shift in strategy is impacting new home loan customers. We also examine Victoria's ambitious $8.6 billion COVID-19 debt tax and its impact on investors, homeowners and the housing market at large. Keep up to date with the latest developments in Australia's financial sector and make informed decisions about your financial future. Click Subscribe to never miss an update!
For more information
For real estate loan inquiries
Find Nathan here:
T: 1300 088 065
Hunter Galloway is an award winning mortgage broker based in Brisbane. We help clients from our region, Australia and around the world. We believe that buying a home should be hassle-free and hassle-free, and we work to help you make your dreams a reality.
Full disclaimer here –
What's up folks, this is Nathan.
Today we take a look at the latest developments in the mortgage market as the National Australia Bank takes another step.
Incrementally, we'll also examine Victoria's ambitious $8.6 billion pandemic debt, Levy and its impact on investors, homeowners and the real estate market in general. Let's start at the top and look at NAB, which continued to retreat from stiff competition in the mortgage market today. They increased their variable rate on new home loan customers by 0.1 percentage point, marking the third time they did so last quarter have.
This is in addition to regular rate hikes due to Reserve Bank interest rate movements.
It follows that NAB recently halted its mortgage cashback offerings, which previously totaled $2,000, repeating a similar move taken by the Commonwealth Bank over concerns.
Among analysts who believe the bank's robust pricing and generous stimulus means new construction loans are collateralized below the cost of capital.
And if you find any value in this video please consider clicking the subscribe button as it really helps the channel and makes a great contribution.
Thank you to all of our subscribers for your support, which inspires us to create more content.
We wish you a lot of fun. Nav has previously announced that the company plans to end its refinancing cashback, which was previously $2,000 and expires in June.
While they've alerted us to this, they've also started considering higher interest rates for new lending customers as the bank is raising rates for front-book customers and cashbacks are set to be phased out soon.
This shows their intent to deviate from the irrational pricing that is sweeping the mortgage market.
This decision reflects NAB's strategy of prioritizing profits over expanding volumes, NAB and the new base.
The variable interest rate on a basic loan with no offsetting account has now increased to 5.99 for owner and tenant loans and for paying principal and interest.
This increase applies to borrowers who borrow between 60 and 80% of their home's value, while loans over 80% have remained unchanged since March.
The bank increased its book interest rates by an additional 0.25 percentage point, more than the cash interest rate that the Reserve Bank increased through this independent revaluation strategy.
Also in line with the Commonwealth Bank, which also raised its rate on new borrowers by a further 0.1 per cent, which we also saw this month, beating the Reserve Bank's rate which went up 0.25 percentage point for the month alone became.
Some regional lenders like Suncorp have also started to slow down their competitive efforts.
It also raised its front book rates by another 0.13 percentage point, more than the Reserve Bank's rate hike this month. Both NAB and Commonwealth Bank, on the other hand, are trying to reduce the amount of rebates they offer to new customers. We see Westpac and ANZ continue to prioritize volume growth and maintain aggressive discounts on new standard variable rates and cashback in the battle for market share. Westpac is currently offering $3,500 for refinance, while ANZ is offering up to $4,000 for refinance $3,000 on new home loans for first-time homebuyers was also implemented this week by Westpac in assessing the viability of certain refinance requests made by the bank in response to growing concerns about mortgage jails were audited.
This is in response to the large number of borrowers in mortgage jail who are unable to meet the bank's fitness assessment of the three percent buffer required for new loans on top of the current rate offered starting this week, Westpac will reduce the credit rating of some refinance applications for borrowers with a solid track record and a credit score above 650.
These discounts apply to loans with lower monthly repayments than the existing ones.
Anz is similarly offering borrowers a solid repayment history and the ability to refinance their home loans with less paperwork as part of the Victorian government's planned $8.6 billion in debt levy for the pandemic stretching over the next four years to investors, vacation home owners and commercial real estate owners contribute a significant portion of the nearly $5 billion financial loan. The debt is said to be covered by these parties, primarily facilitated by lowering tax-free limits, raising tax rates and making additional fixed payments when assessing their property taxes.
The State Treasurer announced in Tuesday's budget that Victoria intends to raise another 1.15 billion in the coming year alone.
This increase will be achieved by lowering the threshold for tax-free sale of land from $300,000 to $50,000 and imposing a temporary fixed fee of $500 on land valued up to $100,000 and $975 will real estate up to three hundred dollars, property owners, equity interests up to three hundred thousand dollars and real estate owned by trust companies over two hundred dollars.
At $50,000, the property tax increases annually by 750 plus one additional point.
One percent of their property value.
Beyond $300,000, the state's decision to eliminate stamp duty on commercial and industrial real estate will offset some.
These increased property tax requirements for some property owners.
The government expects significant revenue of around $4.74 billion for the fiscal year through 2024, and over the next three years this increase in revenue will impact investors and many property owners, particularly those already facing increased costs as a result of recent property appreciation are justified according to the treasurer.
The Treasurer defended the changes, explaining that the price increases were a result of supply and demand dynamics which consequently benefit landlords, noting in particular that Victorians who own multiple properties should contribute marginally to the pandemic debt, with certain properties continuing to do so are exempt from property tax payments, including primary residence, farm retirement homes, etc. Land owned by charities or religious organizations.
The Treasurer also announced a transition from lump sums and duty payments on commercial real estate transactions starting mid-year.
This change frees businesses from fixed locations and allows them to expand without being hit with high stamping and duty costs. When purchasing commercial or industrial property after July 1, 2024, you have the option of paying stamp duty in a lump sum upfront or paying a fixed annual payment over a 10-year period.
This can be done through the government promotional loan, which includes stamps, duties and interest.
And if the owner chooses a fixed payment and no further stamp, the tax becomes due if they sell the property within a 10-year period.
However, if the owner decides to sell, he is obliged to settle the outstanding payments.
After the first 10-year period, a flat property tax of one percent per annum based on the value of the property and unimproved land will be introduced. Remember to like and subscribe to stay up to date with all things real estate and finance. The budget paper forecasts a decline in home values across the state, up about 3.5 percent this year.
However, these have been mitigated by low supply and limited fire sales, while tight credit conditions are expected to remain a key factor in the near term.
The budget forecasts a six percent rise in prices in calendar year 22.24, supported by elevator migration and strong job markets. Transaction volume is expected to recover towards the end of 2023, increasing steadily by 15.3 percent compared to 2024 and eventually stabilizing. Did you know? are Hunter Galloway.
We approve mortgages.
So if you are looking for a great mortgage broker we can help you at Huntergalloway.com or call us direct on 1300 088-065.
Until next time.