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New year, same official interest rate.
The holiday is over. Or is it? Mortgage holders can continue to relish record low interest rates – the longest in history – as the Reserve Bank of Australia voted to keep the cash rate on hold. It has remained at 1.50% since August 2016. Looking back at the last quarter of 2017, there is great news for first home buyers, owner-occupiers and local investors. Economists say that, with foreign buyers pulling out of the Australian housing market, more locals looking for a home or investment are set to increase their share in the market. NAB Chief Economist Alan Oster says first home-buyers are entering into the market at the highest levels since 2011, making up 18% of new owner-occupier loans. He also reports that “sentiment towards Australia's housing market remained at above-average levels in the fourth quarter of 2017” – a positive sign for 2018. Time to refinance? Experts point out that, while interest rates are expected to stay on hold for a while, they will eventually rise. That’s why many think now is the perfect time to look at refinancing. There are currently a number of lenders offering variable rates below 4%. Refinancing now can help you get ahead on your mortgage repayments, saving you thousands in the long run. If you’re interested in reviewing your options, as usual, we are always here to help. Until next month, Rachael and the Team @ Get Smart Financial. |