Concerns about household debt levels and the downturn of Chinese investing across Australia has prompted the federal government to focus more energy on the housing market. Mortgage brokers in Sydney are aware of these growing concerns and know why the government is keeping an eye on the housing market.
Recently, John Fraser, keynote speaker at the Stockbrokers and Financial Advisers Conference in Sydney, said that household debt has exponentially increased faster than household incomes in recent years.
The increase in debt could cause issues with borrowing and credit, especially under the new, tighter credit rules. Mortgage brokers know how to approach these concerns and can help borrowers address them, and assist buyers in paying off their mortgages faster. Philip Lowe, RBA governor, is seeking to gather data from banks related to the debt-to-income ratio of current borrowers. They are seeking to prevent unpaid loans and other debt.
The recent reduction in Chinese real estate investing across Australia threatens to affect the country’s economy, which only adds pressure to the issue of increased household debt in general. In general, foreign residential housing investments have fallen from 40,000 in 2015 and 2016 to 15,000 in 2016 and 2017. Strategies are being implemented to reduce the outflow of the capital from China’s real estate investments and maintain economic stability.
The interest in Chinese business investments remains strong in light of tighter credit rules across banking institutions. Moody recently lowered the credit rating from A1 to Aa3 for China hoping the financial strength of China may somewhat erode over the next few years. This is the first downgrade for China since 1989, and was virtually ignored by their government’s finance ministry.
Any concerns about paying off your mortgage and reducing your household debt can be addressed by talking to financial experts and reliable Mortgage Brokers in Sydney.
First Choice Mortgage Brokers are a Sydney Mortgage Broker operating under the Australian Credit Licence Number: 382370