Affordability is king
While always important, affordability is set to be an even more pertinent consideration going forward and buyers are therefore advised to keep all accounts in good standing and save as much as possible for a deposit.
At this stage it is unknown exactly how banks will respond to home loan applications after lockdown, but there is a strong likelihood that it will be with caution and that the qualifying criteria will be more stringent.
While the economic recovery from lockdown is likely to be slow, it’s important that the banks continue lending money in a responsible manner as a means of stimulating the property sector. Whatever the economic situation, people still need accommodation, which means there will be buyers and sellers looking to finance these transactions.
Having said that, it seems unlikely that banks will grant 100% home loans as readily as in the past and, because the cost of funding loans will be more expensive, this could potentially also result in lower interest rate concessions than we have seen in recent months. Furthermore, banks may potentially re-price their future offers, as well as re-assess approvals in cases where the applicant’s circumstances have changed.