As we continue to navigate a path through the Coronavirus pandemic, Australians aren’t wasting any time getting a better deal on their home loan.

CoreLogic figures show a massive 41% year-on-year increase in the number of home valuations being conducted as part of a loan refinance. In fact, seven out of ten home valuations currently relate to refinancing as homeowners seize opportunities to secure a better deal on their loan.

This makes it worth a call to your Mortgage Choice broker to know if your home loan is still the most suitable choice for you. Partnering with a home loan expert is critical at present. Lenders are taking a closer look at borrower’s income – especially non-core income such as overtime and bonuses. 

With access to over 20 different lenders, your Mortgage Choice broker is well-placed to let you know which home loan is well-suited for your needs, and guide you through the loan application process.

Consumer sentiment rises
The ANZ-Roy Morgan Consumer Confidence Index has risen for the seventh straight week, recovering 70% of the fall seen in the final fortnight of March when we were just beginning to feel the impact of COVID-19 restrictions. This is good news for the economy – and the property market. 

According to ANZ Head of Australian Economics, David Plank, the rises in confidence likely reflects the continued good news on the path of the pandemic in Australia and the progressive easing of restrictions we’ve seen in recent weeks.

Home buyers are still active
Buyers are still active in the property market, Australians are still buying property, with CoreLogic recording an uptick of 18.5% in sales activity for May. Values dipped nationally by just 0.4% in May, which is a plus for affordability. Australians are still buying property, with CoreLogic recording an uptick of 18.5% in sales activity.

As state governments carefully wind back restrictions, several states have reinstated open home inspections and in-person auctions. This has driven auction clearance rates to levels equal to, or above, those we were seeing this time last year. In Sydney for example, late May saw a city-wide auction clearance rate exceeding 74%, higher than the 56% clearance rate recorded in May 2019. 

This highlights that Australians are still buying property. As comparison site Finder notes, "Buyers with a deposit ready to go could be the most powerful players in the market right now".

Interestingly, property investment body – PIPA, tracked the property market to see how it fared following economic downturns over the past 50 years. It found that in every case, house prices were higher five years after the downturn. It goes to show the long term resilience of property – especially when it’s backed by a competitively priced home loan.

Capital city values⁸

Brisbane $508,386

Sydney $885,159

Canberra $637,279

Melbourne $686,798

Hobart $486,056

Adelaide $441,184

Article compliments of Mortgage Choice