Home Owner-Occupants are now becoming the New Prime Customers for Banks

The Australian Prudential Regulating Authority (APRA) has warned Authorised Deposit Taking Institutions (ADIs) including banks to slow their investor lending growth to less than 10 percent a year. APRA has also advised that this is a benchmark, not a cap. This decision by APRA is seen as a "boon" for home owners (also known as owner-occupants or owner-occupiers) who are looking at getting into the property market and who are considering paying off a mortgage on the house they live in.

These owner-occupiers will become the new prime customer for the banks. So, now is the best time for them to get an owner-occupied home loan. Owner-occupiers will enjoy cheaper loans than property investors and this will mean that they will get bigger interest rate discounts on loans. So, if you are an owner-occupier, you should consider this situation as being a good opportunity to get your finances in order.

Making the decision to buy a home, that you intend to live in, is indeed a very exciting prospect. However, understanding your finances is equally exciting and in fact, much more important. So, before you consider taking advantage of the bigger interest rate discounts, here is a list of how you can start to get your finances in order:

>> Set your financial goals;

>> Know your finances and your budget inside and out, by using a budget planner calculator

>> Prepare a list of all your assets as well as your expenses and outgoings;

>> Calculate how much you might be able to borrow by using the borrowing power calculator

>> Research all the types of owner-occupied home loans, so that you can explore the numerous options available to you ;

>> Find out how much your repayments would be for the loan;

>> Familiarise yourself with the First Home Owners Grant (FHOG) and other types of assistance available from the Government as it may give you an extra cash injection and help you make your purchase sooner. For more information simply click on http://www.firsthome.gov.au;

>> Depending on which state or territory you live in, you may also be entitled to Stamp Duty rebates or exemptions. For more information simply click on http://www.firsthome.gov.au; and

>> Ask for your finance to be pre-approved as it will put you in a stronger negotiating position with the vendor or real estate agent.

An owner-occupied home loan/mortgage will most likely be the largest financial commitment you will ever make. So, you need to ensure that you are taking all the necessary steps.

If you think it is too difficult to get an owner-occupied home loan, you should take help of a professionally qualified finance broker, who has a thorough knowledge of the credit policies and standard requirements of owner-occupied home loans and who is also a home loan expert.

A finance broker will help you to:

>> Determine your borrowing needs and ability;

>> Select an owner-occupied home loan suitable to your circumstances;

>> Manage the process right through to settlement.

So, don’t waste any time in dreaming about your perfect home. Obtain an owner-occupied home loan in Sydney and make it a reality.