Housing affordability improving for buyers in new financial year: Aussie Home Loans

Housing affordability improving for buyers in new financial year: Aussie Home Loans
Housing affordability improving for buyers in new financial year: Aussie Home Loans

Aussie Home Loans boss James Symond believes home buyers will enjoy better buying conditions in the 2018-2019 financial year, with housing affordability improving on the back of weaker property prices.

The Aussie chief executive says that while sluggish wages growth and ever-tightening lending conditions are still cause for concern, the easing or reversal of price growth in some markets will be a welcome change.

 Housing affordability improving for buyers in new financial year: Aussie Home Loans

Souce: CoreLogic

“The Housing Industry Association’s recent report showed easing property prices have improved affordability in five of Australia’s capital cities in the June 2018 quarter, with Hobart, Adelaide and Melbourne the exceptions," Symond said. 

“Perth continues to be Australia’s most affordable capital city and represents excellent value for first home buyers and investors. I expect we will see a return to growth in that market very soon as buyers capitalise on its market conditions."

Housing affordability improving for buyers in new financial year: Aussie Home Loans

Symond pointed to Aussie’s recent 25 Years of Housing Trends report which showed loan serviceability levels have improved over the last 25 years.

The proportion of annual household income required to service a mortgage (based on a 20% deposit) is currently tracking at 36%, up from 27% in 2001, but down from its peak of 51% of annual income in June 2008.

“A new report released this week by Deloitte Access Economics shows that mortgage brokers make mortgage markets work better, providing information and improving choice and competition for borrowers. It’s for these reasons and more that there’s never been a better time for a borrower to use a mortgage broker," he said. 

"Brokers intimately know the various lending criteria and policies of different lenders, and so can help borrowers secure the right loan faster and easier than going it alone.”

Housing affordability improving for buyers in new financial year: Aussie Home Loans

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Housing Affordability Home Loans

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