The past week has been full of great news for the Perth housing market, coming together to create the perfect time to buy! We have seen interest rate cuts, the Senate pass the Coalition Government’s ‘Three Part Tax Cut Bill’ and now APRA have made changes to lenders assessing home loan applications at a minimum interest rate of 7% effective immediately, instead they will be able to review and set their own minimum interest rate floor and use a revised buffer.
So what does this mean for you?
Interest Rate Cut
The Reserve Bank of Australia reduced the cash rate to 1.00% – this 0.25% reduction follows the same cut the previous month. This change can see home buyers now eligible under the lower repayments and obtain a loan depending on their borrowing capacity. This rate cut may also help investors who can look to invest in higher-return areas.
Coalition Government’s Three Part Tax Cut Bill
On 4 July 2019, the Senate passed the Coalition Government’s three-part tax cut bill, with immediate impact to be felt by low and middle income earners. This increase to the low and middle income tax offset will cost $14 billion over the four years to 2022-23.
- 1.6 million taxpayers in the $90,001 to $126,000pa bracket will receive a tax relief benefit between $1080 to $0;
- 4.5 million taxpayers in the $48,000 to $90,000pa bracket will receive a tax relief benefit of $1080;
- 1.8 million taxpayers in the $37,001 to $47,999pa bracket will receive a tax relief benefit between $255 and $1,080.
APRA has today announced they no longer require lenders to assess home loan applications using a minimum interest rate of 7%, effective immediately. Instead, ADIs will be able to review and set their own minimum interest rate floor and use a revised buffer of 2.5% above the loan’s actual interest rate. By improving floor serviceability, consumers who were previously unable to obtain a loan may be successful in a second application
Speak to Impressions Today
These three changes have created the perfect time to buy for the Perth housing market. As a quality home builder with over 20 years of experience, we are there with you every step of the way to create your dream single storey home that will suit your lifestyle and budget.
At Impressions, we believe in affordable luxury, which is why all of our home designs come at an affordable price point and with our quality Signature Specification. We understand that when building a new home, there is plenty to consider. That’s why we are with you every step of the way from design, pricing, administration and construction, offering superior flexibility, peace of mind and quality guarantees!