Last updated on 25th January 2022

If Australia’s Property Boom is Over What Does It Mean for Your Mortgage?

With higher interest rates and tighter lending restrictions on the way, Australians are being urged to prepare for a market downturn.


New Service Helps Aussies Compare Loans and Refinance Their Properties

Global investment bank UBS has been the first to cry downturn after Sydney home prices fell for the 2nd consecutive month. The historic call follows weak clearance rates alongside either a drop or minimal growth in house prices across Australia’s capital cities.

If the bubble is to burst it would signal the end of a record 55 years of market growth, a golden age most thought would never end. But what does this timer mean for property owners?

Owner-occupiers will find it much harder to release the equity in their homes as the banks respond by tightening their lending standards. Refinancing before the looming decline can help you make the most of your property’s value and get on a rate better suited to the changing times.

It’s also a good idea for investors to refinance now while property values remain high. That way you can mobilise the power of your equity before values fall to either grow or consolidate your portfolio.

If you’ve been thinking about using the equity in your home to refinance, renovate or otherwise utilise your investment, it’s important to act before the downturn. And with it’s simple to find out exactly what a refinance could save you.

Here’s How You Do It:

Step 1: Select your State below.
Step 2: After answering a few questions, you will have the opportunity to compare competitive rates and could be eligible for significant savings.

“A reduction in property prices will mean a further tightening of lending criteria by the banks,” warns James Green, General Manager of Home Loans Australia. “This will make it much more difficult for borrowers to release the equity in their homes.”

“Choosing to act now could be the difference between being able to access your investment and being locked out by your lender.”

At it’s easy to refinance and find a lower interest rate for your mortgage. Our users love that they can sort everything out in a couple of clicks and a phone call, making it easier than ever to save money. You get access to low rates and expert brokers for free, all from the comfort of your own home.

And there are big savings for homeowners who shop around. Recent insight from Galaxy Research has shown that despite the record low interest rate more than half of all mortgage holders in Australia are still paying more than they need to. 54% of mortgage holders are paying a rate of 4% or higher, and 13% are on rates over 5%.

The difference a few percentage points can make on your bottom line is mind-boggling. For example, on a $500,000 loan, the difference between paying a rate of 4.5% and paying 4% works out to a staggering $41,996.77 over the life of a standard 30 year loan. That’s over $40k for you to spend or reinvest.

With you can find rates as low as 3.63% for a principal and interest loan* and discover the deals available from our panel of market leading lenders. Our team of experienced Australian brokers can do the work for you to handle paperwork and even negotiate for a better rate on your behalf.

It’s quick, free and simple to compare and save with Just a few minutes of your time could help you save thousands of dollars on your mortgage.

*As of October 19 2017

This article is opinion only and should not be taken as financial advice. Check with a financial professional before making any decisions.