Over the past six months, the average person’s borrowing capacity has fallen by about 25%.
That’s because the maximum amount a typical person can borrow falls by about 5% every time the Reserve Bank increases the cash rate by 0.5 percentage points, according to the Reserve Bank’s head of domestic markets, Jonathan Kearns.
Since May, the case rate has jumped by 2.5 percentage points, which is why borrowing capacities have fallen by about 25%.
As a result, it’s become hard to qualify for larger loans; and harder for some borrowers to qualify for any loans at all.
There’s never been a better time to use a broker to help you buy your dream home. Here’s why
- Your borrowing capacity varies from lender to lender
- We work with a large, diverse panel of lenders for both new loans and refinance
- So we can recommend lenders that want to do business with borrowers like you
- We can present your application in a way that appeals to the lender’s individual criteria.
Unfortunately, if you try to manage the application process yourself, you might choose and unsuitable lender or present your application incorrectly – and potentially get rejected.
Give us a call today 1300 633 667 to see how we can help or click here to get started.
