Problems with interest rates and repayments? Ask for home loan help.
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Many people are wondering what will happen to interest rates in 2009. Financial advisors, economists, mortgage brokers and consumers are all thinking the same thing. How low will they go?
Since September 2008 we have had four official interest rate cuts from the Reserve Bank of Australia (RBA), followed by reductions to home loan interest rates. Home owners are now able to get a home loan with an interest rate nearly three per cent lower than they were in August. With mortgage rates as high as nearly 10 per cent, rates have fallen to below 7 per cent for standard variable rate mortgages.
Economists believe offcial rates will head towards three per cent, possibly down to 2.5 per cent by mid-2009, how low home loan rates will go remains to be seen. Banks and non-bank lenders do not necessarily cut their rates following a RBA announcement, and following the previous round of cuts, most lenders passed on 80% of the cuts, while a only a handfull passed on the full reduction to home owners.
Finance experts agree that the RBA is aware of the economic crisis and will act accordingly. Currently the official rate is 4.25% coming down from 7.25% in August, and many are predicting the cash rate will settle at 3% by June of this year.
Will lower official rates mean even lower home loan rates? Talk to a mortgage broker to find out.
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