The NAB loan change effect: what it means for Emerald
THERE are many changes taking place in the home loan market of late, which could understandably be quite confusing for locals who are looking to purchase property in the near future.
For instance, National Australia Bank last month identified a list of postcodes across Australia where it believes there may be rising credit risk in the mortgage market, and has in turn restricted the percentage of a property's loan-to-valuation ratio (LVR) it will lend in certain postcodes.
In simple terms, these new restrictions will require borrowers to save a deposit of either 20% or 30% of a property's purchase price.
Local Mortgage Choice franchise owner Jacqui McCoy said while a small number of Australia's lenders have enforced these restrictions, this is not the case with all lenders.
"The fact of the matter is that while there are a few lenders that are imposing up to 70% LVR restrictions on new lending, there are other lenders that are still lending up to 90% and even 95% of a properties value - so it pays to shop around when it comes to finding the best home loan deal for your needs," she said.
But it is not all bad news.
"Property prices have reduced dramatically in recent times, making buying property in Emerald much more affordable now than it has been in past," Ms McCoy said.
"In fact, in recent months I have helped a number of young families who were financially ready move forward, buy their first home - a feat that may have been out of reach to them in the not too distant past.
"Rental expenses are currently sitting quite low in Emerald, so many potential first home buyers may find themselves in a better position to save the deposit required to purchase a home."
For those local borrowers who are still concerned about how the new lending restrictions may impact their dream of home ownership, it may be wise to seek professional help.