As of the 30th of September 2020, Metropolitan Melbourne’s 14 day rolling average was down to 15.6. Earlier today I listened to Daniel Andrews deliver this news along with some other great news which I decided was worth mentioning and focusing on; 1. the strategy is working, and 2. we can be optimistic and hopeful for the 19th of October.
As someone who is living through stage 4 restrictions I can honestly say that at times I have found it hard to remain positive and optimistic, but it is what it is so I quickly remind myself to shift my mindset to positive thoughts and remember this saying – “where thoughts go energy flows”.
As we start to see some light at the end of the COVID-19 tunnel I thought it was good timing to provide first home buyers with an update on what is going on with lenders, private inspections and provide an update on what Government incentives are still available.
Private inspections are back on
In case you missed it, private inspections are back on for Victorians. There are some important things to note of which I have listed below:
- You can travel more than the five kilometres from home to inspect a property across the city so long as it’s within Metro Melbourne
- If you live in Metro Melbourne and are looking to purchase or rent in regional Victoria, you are not yet able to view these properties in person
Are there still spots on the First Home Loan Deposit Scheme July 2020 release?
The short answer to this is no. The first home loan deposit scheme spots were snapped up very quickly again this time around with all lenders now saying they have no spots left for the July 2020 release.
There is still the potential that you could go onto a waitlist, but not all lenders are offering this and you will have to wait until an existing reservation expires or a potential borrower withdraws from the scheme.
Along with the first home loan deposit scheme there are still the other Government incentives available to first home buyers so if you are hoping to buy something in the near future or think you are close to being ready, now would be a great time to get in touch with and I’ll help you put a plan into place.
You can also head to https://cherrylending.com.au/first-home-buyer-case-study-new-home-in-victoria/ and find out more about what other Government incentives are available.
Is it easier to get a loan?
You may have heard Treasurer Josh Frydenberg speaking recently about making it easier for borrowers to get a mortgage and are wondering if it is easier now to get a loan. Nothing has changed in that space with regards to how banks assess your financials and the lender policies and processes remain the same as they did a couple of weeks ago.
Regardless of what the Government would like to see happen or what the lenders are doing with their policies, the best thing you can do if you are looking to purchase a house is be prepared and follow some of the below recommendations:
- Have a budget so you can monitor where your money is going and work out expenses you might be able to cut back on so that you can save more for your deposit
- Save, Save, Save. At a minimum you should be aiming to have at least 5% of the purchase price
- Get rid of bad debt where you can such as credit cards, personal loans and interest-free plans like AfterPay
- Speak with a mortgage broker like myself and put a plan into place that will assist you to get into the best possible position to get a loan in the future. Remember, “knowledge is power”
- Read this blog I wrote last year as it elaborates on the above – https://cherrylending.com.au/5-things-first-home-buyers-need-to-know-in-preparing-to-purchase-their-first-home/
Is it taking longer to get a home loan approved?
The wait times to get a loan application assessed with some lenders have blown out since COVID-19 hit, however there are plenty of other lenders who are assessing applications in under a week.
It is hard to determine what the wait time will be for a client until such time as a full assessment has been done and I can work out which lender or lenders they have available to them based on their unique financial circumstances.
With restrictions lifting there will be no doubt that more houses and units will be listed for sale, so if you are hoping to purchase in the near future now is a very good time to get yourself organised and stop guessing what might be possible.
This page /newsletter provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances.
