2nd November 2022 / Sarah Lowry: Is Your Property Plan on Track, Despite Rate Rises?

With another interest rate rise announced this week, it's certainly a challenging time for upsizers and first-home buyers, as they determine if they have enough cash and credit to fulfil their immediate property ambitions.

Changing interest rates have made the mortgage and refinancing landscape a moveable feast.

Lenders are tending to take more time in assessing applications at the moment, as they weigh up the dynamics of mortgage rate increases and their impact on property values. The days of approvals within 24 hours have pretty much disappeared.

But the current market does give both sellers and buyers more time to assess their position and to make the right long-term purchase.

Check out our top tips to help you assess whether you are ready to either make your first purchase or sell your current home and find a new property.

Redouble Your Research

Your research should never be a one-hit-wonder. Consistent diligence is the key while you're in buying and selling mode. Don't jump on a few websites one Saturday morning, type in a couple of searches and think "job done".

Focus Your Attention

Study only those properties that are comparable to your target property or the one you wish to sell. Any other data is misleading and irrelevant, and it can lead you into the trap of false assumptions. Keep track of your work by using a spreadsheet to record details of relevant properties, such as location, size, features, agent, price guide and auction date.

Call Your Bank or Broker

If you've lined up a source for your finance, don't be afraid to ask them how the current mortgage landscape might affect you. If you engage consistently and constructively, you may uncover information on new banking products or deals.

Loan Options

There are an array of loans available. The most common for residential properties are variable rate, fixed rate, split-rate (a mix of fixed and variable), bridging loan, land loan, construction loan and line of credit. Don't just look at the interest rate, though. Loans come with conditions. Read the small print so you don't sign a deal you may regret later.

Call Your Agent

If you intend to sell and haven't had your local Fletchers agent make an appraisal, don't delay. You may think you know the value of your property, but your agent will either validate your opinion or give differing guidance. Over-estimating the value of a property is a common seller error when a market returns to more regular patterns.

Please don't hesitate to get in touch with us for any real estate advice you may need.