Morning All,
The housing market continues to be on the forefront of most conversations and media articles. Especially with the RBA’s commentary last week with the first reserve Bank meeting for the year and them keeping rates at an all time low. Dr Lowes commentary around not raising rates till 2024 came with some loaded views. I know that the RBA are concerned about the usual factors like jobs and wages and inflation. Dr Lowe made pointed commentary that the RBA wasn’t as worried about rising prices as they were about Banks and lending standards and should these deteriorate the RBA and the regulators would respond... A sobering thought…As if the banks need more excuses to be on what could be described as an old school ‘union go -slow’.
2,000 places were released back into the FHLDS scheme last week due to those who had places not settling on their proposed purchases. These are likely to just be re-applied for with many of them likely to just be delayed settlements due to delays in the building industry.
Updates were made to the Mandatory Credit Reporting Law last week. Which will see even more information put into credit reports, now listing when clients have applied for financial hardship and this will remain on a clients report for 12 months and potentially longer. Even if that financial hardship was only for a brief period of time. I constantly meet clients that clients don’t understand their credit score and many I have spoken to recently didn’t even know that every time they apply for credit their report gets marked and reduces their score.
In the last week I had a client who was on a great income, no issues paying their bills usually but had a direct debt fail two of payments on a credit card 12 months ago (due to a personal event) They didn’t know that this would be reported and they certainly weren’t aware that this could have very easily placed them into the credit impaired file going from a very sharp 2.64% to potentially a 4.45% with a specialist lender. I was able to explain to the lender what had happened for the client which they accepted and lucky for the client they still had a score above 800. By running a credit report early in the piece, I was aware of the issue able to discuss with the client what happened and mitigate this with the lender BEFORE we applied thereby making sure we got the job done. It also meant that by doing this upfront that we knew which lenders would and wouldn’t accept the explanation around what had happened for the client.
It certainly pays to have a broker on your side.
Have a smashing week out there, reach out if you need anything.
JC
Scenarios and rates quoted are indications only and don't take into account your personal situation.
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