Owner-occupiers are due to come to the fore in the current property market.
The rapid price rises of the past couple of years have primarily been driven by property investors, who have crowded out owner-occupiers. However, recent banking changes are going to make things harder for investors; clearing the way for owner occupiers.
Prompted by government regulators, banks are making it tougher for investors to get finance – in some cases with interest rates .27per cent higher.
As a result, there is some evidence that investors are becoming more cautious in their decisions. But, as respected industry commentator Louis Christopher said, it is likely that the measures “will slow the rate of dwelling price inflation recorded, rather than create a price correction.”
This is good news for people looking to buy their own home. While the banks are making it tougher to get investor finance, they are still aggressively competing for owner-occupier business.
Rates remain at record lows, with banks launching new offerings with incredibly competitive rates – some lenders are offering variable rates of 3.99 per cent and others are still dropping fixed rates.
If you have been pipped to the post at auction over the past years by investors, this could well be your moment. Because the banks are competing aggressively for owner-occupied loans, they are offering various inducements. For example one lender just announced:
- $2,000 in cash for owner-occupiers purchasing or refinancing with them; or
- Refunding Lenders Mortgage Insurance (if you borrow 80-85 per cent of the property’s value)
Long treated as the handmaiden to investors, this could be the owner-occupier’s chance to bloom.