Issues Collide to Create Uncertainty Around Mortgage Options, Rates

Recent interest rate cuts, mixed messages around housing prices, cost of living increases, the Australian election and even US tariffs are fuelling an increase in uncertainty from existing borrowers and those wanting to enter the market, according to the peak body representing Australia’s finance and mortgage brokers.

Managing director of the Finance Brokers Association of Australia Peter White AM says feedback from members indicates that perceived political and market instability is creating confusion as borrowers weigh up options.

“Wider issues can affect decisions around a property purchase, so when our members tell me they are suddenly receiving a myriad of questions, I’m not surprised.”

However he said one of the most common questions has the easiest answer.

“One question is whether ‘now’ is a good time to buy, but when you look at the history of real estate prices, now – whenever that ‘now’ may be – is always the best time to buy, because it’s easier to stay in the market than enter it.

“Prices will always, over the long term, increase, and there are many Aussie millionaires today who created that wealth simply by purchasing a home when it was worth a lot less.”

Mr White said borrowers who are uncertain about their situation should first ask themselves what they want to achieve, take a rational approach and see a mortgage broker to discover the options, even if they have been rejected by a lender.

“Remember that a bank can only offer you its own products, and if that product doesn’t meet your needs or if you don’t meet that bank’s criteria, you may be rejected or get a loan product that is unsuitable,” he said. 

“If you are rejected by a lender don’t think this excludes you from the market, as mortgage brokers can offer many pathways to home ownership.”

He said the specifics of the loan must come down to what is best for that borrower at the time and emphasised that “as finance and mortgage brokers are legally obliged to act in the borrower’s best interests, you can be confident in the outcome.”

“If you’ve been rejected or are just uncertain about current options, I’d encourage you to get the right guidance.”