Frequently Asked COVID-19 Questions #3 – Is now a good time to borrow or invest?
Feeling that itchy trigger finger looking at your equity or financial postition vs the market right now? Brooke sits down and gives DLS members her 2c on what to watch out for if you’re ready to take advantage.
Yes. Rates are the lowest we’ve ever seen them.
We are seeing some advertised fixed rates as low as 2.09!
Which is ridiculous.
So its absolutely a good time to be refinancing or borrowing money.
However there are a small number of lenders across the lower tier of lending that are restricting their ‘book’ across certain industries.
Definitely the Big 4, and their tier below Big 4, are definitely open, business as usual – albeit asking a few more questions and scrutinising a bit more, which is fair enough.
We have had a bit of an influx of enquiries from clients who have a bit of equity in their owner/occupier property, and they’d like to release some of that, and invest some of it in the stock market while its crashed. Great idea, however just exercise some caution with this, we’re actually recommending coupling that with some financial advice written down financial advisor, to recommend that structure. That will just assist with the approval, the banks are not wanting Mum and Dad investors to just come in and ‘wing it’ throwing some money at the share market because they heard at a barbeque on the weekend (not that we’re going to barbeques anymore ) – but they’ve heard somewhere along the grapevine, that it’s a great idea to buy shares while the market is low..
So definitely exercise some caution there, speak to a financial advisor, get some written advice around the strategy that you’re going to use to invest that money, and how that’s all going to look, and present that to us with your application, and it will definitely assist with a much faster and smoother approval.