RateCity shows you how to prepare for mortgage season
August 16, 2010
Spring time; it’s not only birds that start to fluff their nests, but it also marks the start of mortgage season. As winter comes to an end, history proves that spring is the time when borrowers take out more home loans to purchase and build properties. So if you’re in the market for a home, make sure you’re prepared for the busy mortgage season ahead.
A report from RP Data shows that auction clearance rates peak during spring. The national capital city weighted average auction clearance rates sat around 80 percent during September-October last year, while remaining from 65-70 percent during the rest of the year.
According to data from the Australian Bureau of Statistics (ABS) there was a rise in the number of home loans as well as the amount of money borrowed for mortgages during the second half of most years compared to the first six months.
The fact that interest rates have remained stable for the third consecutive month is another reason why this spring could be the time to get serious and start looking for a new home.
So what can you do to prepare yourself for the upcoming mortgage season? If you are in the market for a new property, whether you are a first home buyer or you are looking to move, listed below are some tips and advice so you can own the house of your dreams sooner.
- Be prepared. Have your mortgage pre-approved and ready to go, have any documentation you need ready to get your application moving. Lenders all over Australia are going to be busy reviewing loan applications, so don’t get caught up in chasing paperwork and waiting longer than necessary for your loan to be approved.
- Shop around. If you are in the market for a home loan, compare home loans online, for a mortgage that offers a lower interest rate, and lower fees.
- Do your homework. Look around and see what is available and what houses are selling for in the area that you are interested in. This way you can determine if now really is a good time for you to jump in and if you are getting more for your dollar.
If you want to get in on the action during this mortgage season, make sure you are prepared and always read any contracts or product disclosure statements (PDS) before signing.