Mortgage brokers and advisers at Smartline Rockingham have been telling you about how great a deal the low interest rates are. While cynics are saying that the rate cuts aren’t being passed down to customers, a recent release by CoreLogic RP Data proves otherwise.
According to Tim Lawless, the Housing Analyst and Head of Research for CoreLogic RP Data, homebuyers in Australia are reaping the benefits of the lowest interest rates since 1968. The variable mortgage rate is projected to fall to 5.7% while discounted variable rates were projected to fall to an average of 4.85%. However, some lenders are writing mortgages as low as 4.28%.
According to Mr Lawless, this is resulting in a historically high number of commitments for housing finance due to the high number of people refinancing their homes to take advantage of the rates.
For perspective, the last time rates were this low, the average income was $3,525 a year. Now, the average is more than $70,000.
What it Means to You
Because everyone’s financial situation is different, we can’t give specific advice without talking to you in person. But we can say that it would be beneficial to talk to one of our mortgage advisers at Smartline Rockingham about obtaining a home loan or refinancing your current loan.
We think that there may not be a better time in the future to upgrade your home status. Whether that means buying your first home, your first investment property, buying a larger home or improving your current home, we think it is important to act now.
Property values are stagnant right now, but it may only last another few months. Any delay in purchasing a home may cost you a lot of money. We think that right now represents a “sweet spot” for homebuyers. Prices haven’t gone up yet this year and interest rates have gone down. There may not be another opportunity like this.
Call Smartline Rockingham to learn more: (08) 9527 1800.