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The most recent research from Roy Morgan revealing that in the three months leading up to March 30.3% of mortgage holders were deemed ‘at risk’ of experiencing ‘mortgage stress’, the first decrease in mortgage stress for the year 2024, following three consecutive increases in December 2023, January, and February.
In March, there was a decline of 98,000 individuals at risk of mortgage stress compared to February, although it remained slightly higher than the December figure of 1,527,000.
Despite this, the March data indicates that the risk of mortgage stress remains significantly lower than the peak of 35.6% recorded during the global financial crisis (GFC).
Whilst this isn’t good news as such, hopefully this points to improving fortunes for a huge number of mortgage holders in Australia.
In this week’s newsletter, we take a look at the impact of buying a home near to high transmission power lines when it comes to applying for finance.
The proximity of a home to high transmission power lines is a factor for lenders when assessing a home loan application due to potential health and safety risks and the impact on property value.
High transmission power lines emit electromagnetic fields (EMFs), and while the health effects are still debated, some studies suggest a possible association with increased cancer risk and other health concerns. Additionally, the visual and perceived impact of living near power lines can deter potential buyers, affecting the property’s resale value.
Lenders take these factors into consideration as they may influence the property’s marketability and, consequently, its potential for resale in the event of default. Thus, homes located near high transmission power lines may face stricter lending criteria or even higher interest rates due to perceived risks and potential difficulties in selling the property.
Examples of Lender Guidelines
As you can see, lenders often take a dim view of proximity to high voltage transmission lines.
A lot of time can be wasted dealing with lenders in such circumstances, so it’s important to realise this may be a factor and choose a lender accordingly.
If you have clients looking to purchase within such proximity, have them contact us to hep them undertand the best finance options for them.
Variable
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR.
1 Year Fixed
The rates below are based on a $500,000 loan, with the borrower making principle and interest payments with a loan term of 30 years. The rates quoted may vary depending on the borrowers LVR. At the end of the three year fixed period, the borrowers interest rate will revert to a standard variable rate for the life of the loan.
