Mentor Mortgages in Kellyville, New South Wales | Loan service

Mentor Mortgages

Locality: Kellyville, New South Wales

Phone: +61 409 778 176

Address: Swann Place 2155 Kellyville, NSW, Australia

Website: http://www.mentormortgages.com.au

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25.01.2022 Suburbs set to boom in 2021: Central Coast, Greater Byron region to lead growth Growth in house prices will accelerate over 2021 and Sydney’s outer suburbs and coastal suburbs are tipped to lead the charge, new research revealed. Harbour City prices increased by an average of about four per cent over the year and bigger rises are expected over 2021 due to improving buyer confidence and lower interest rates spurring demand. The consensus from economists and banks is that Sydne...y prices will grow by an average of at least five per cent, with some tipping double digit rises. Bullish predictions included projections of 7-11 per cent growth by SQM Research, which has been among the most accurate forecasters of housing values over the past decade. But housing pundits also warned that price rises would not be evenly spread as buyers were gravitating to outer Sydney and regional NSW, while generally shunning inner city units. See more

24.01.2022 Seven signs the housing market is moving through a peak rate of growth The pace of capital gains across Australian housing markets has been close to record breaking, with the national growth rate in March the fastest since 1988. Such exuberant conditions have been driven by a multitude of factors including record low mortgage rates, a stunning surge in consumer confidence as the economic recovery beats expectations, a range of additional stimulus measures which have incentivi...sed home buying and building, and persistently low advertised inventory levels which has created a renewed sense of FOMO amongst buyers. But there are some early signs the exuberance in the housing market may be peaking. This isn’t to say housing values are about reverse; a more likely scenario is the housing market is moving through a peak rate of growth and the pace of capital gains will gradually taper over coming months. CoreLogic’s home value index is already indicating a slowdown in the pace of capital gain 1. Lower clearance rates 2. A rise in vendor activity 3. A lift in new housing supply 4. Negative population growth 5. Less incentives 6. Higher barriers to entry 7. RBA cash rate Source Core Logic. See more

19.01.2022 Australian house prices: RBA analysis suggests property could jump 30 per cent in three years. Heightened borrower confidence in record low interest rates could push property prices sky-high according to analysis by the Reserve Bank of Australia. In an internal document accessed via the Freedom of Information Act, the RBA has predicted that home values could rise by as much as 30 per cent within just three years due to borrower belief that rock bottom interest rates are here ...to stay. Ultimately, the RBA sees rising asset prices (or home values) as a net positive, despite some economists warning that the unprecedented low interest rates could destabilise the economy. The internal RBA briefing noted that a rise in house prices (and other assets such as shares) would lead to increased household wealth and improved cash flow. As a result, Aussies would get out and spend more, and that in turn would stimulate the economy and business investment. According to the analysis, a permanent 1 percentage point (or 100 basis point reduction) cut in the official cash rate would increase real housing prices by 30 per cent after about three years. Whereas, if borrowers and homeowners had less confidence in a prolonged rate reduction and believed the low rates were only temporary, then house prices would only rise by about 10 per cent over a three-year period. However, RBA governor Philip Lowe has all but promised that the 0.1 per cent cash rate will not increase for at least three years. See more

08.01.2022 What's up with the fixed rate market? It seems like everywhere I look banks are offering super low fixed rates. For consumers in search of a fixed rate loan and who meet the bank criteria, these rates are a pretty good deal. But why do these cheap rates exist? Recently I engaged with a number of researchers and economists to gain a better understanding of what’s going on. Here’s what I found out... Why are fixed rates so cheap? There are a few reasons. To start with, banks (...who are primarily the ones offering these rates) have access to some very cheap funding at the moment, through government support in the form of the Term Funding Facility (TFF) at 10 bps. On top of this, we’re seeing low rates being paid on deposits, with the RBA cash rate sitting at just 0.10%. Why aren’t variable rates as cheap? Variable rates remain significantly higher than fixed rates (approximately 0.2-0.5%) and many argue this is due to two main factors; The longer average life of fixed rate loans. Because fixed rate loans generate income for the bank for longer, it makes less sense for banks to reduce the rate on their variable rate loans. The shape of the yield curve. This dictates the rate at which a fixed rate loan can be hedged back to a variable rate. It could also be that banks are smart enough to realise they face less pressure to discount their existing customer rates if they only discount new customer fixed rates. If they also reduced their new customer variable rates, existing customers might expect a discount too having a material impact on book yield. When will the cheap fixed rates end? The TFF government support programme that allows banks to access cheap funding is due to end in June. At this time we may see fixed rates normalise to be closer to variable. However, it looks like banks have fulfilled much of their funding needs for some time, so cheaper fixed rates may be available for a bit longer. Will fixed rates go lower? No one knows the answer to this but the swap market is not currently giving us any reason to believe fixed rates will go lower. With cheap bank funding rolling off soon, it looks less likely there will be further fixed rate reductions. So should I fix my mortgage? Obviously it depends on your situation but it may make sense if you intend to have your mortgage for longer than the fixed rate period. Remember that if you repay a fixed rate mortgage before the end of the fixed rate period there may be a break cost. The current market would suggest the break costs may not be enough to counteract the benefits - but this could change at any time if swap markets shift. Source: Campbell Smyth CEO - Bluestone See more

05.01.2022 Home values continue to rise but the pace of growth loses steam in April Australian housing values lifted by 1.8% in April according to CoreLogic’s national home value index, with the monthly pace of capital gains easing from a 32-year high in March (2.8%). Although growth conditions have slowed, housing values are still rising at a rapid pace, up 6.8% over the past three months to be 10.2% higher than the COVID low in September last year. CoreLogic’s research director, Tim ...Lawless, says the pace of capital gains could slow further over the coming months as inventory levels rise and affordability constraints dampen housing demand. The slowdown in housing value appreciation is unsurprising given the rapid rate of growth seen over the past six months, especially in the context of subdued wages growth. With housing prices rising faster than incomes, it’s likely price sensitive sectors of the market, such as first home buyers and lower income households, are finding it harder to save for a deposit and transactional costs.