Home Loans to be affected by Rate Drops, Expects Industry Experts

 

Over at Your Mortgage, an Australian mortgage website, there is a report that analysts are expecting the interest rate to drop to 1.5 per cent this year. Earlier, the Reserve Bank of Australia (RBA) reduced the cash rate 2.25 per cent. This is left unchanged as of the moment but analysts declare that it won’t be surprising if the rate gets cut to 1.75 or 1.5 per cent later on. The basis for this prediction includes bigger challenges to the mining sector, softening of China’s economy, and the increased value of the Australian dollar.

 

ina 5.jpg

 

With this interest rate cuts, people who are planning to make home loans or go into property investment should exercise closer care regardless if they are a first-time buyer or a seasoned investor. The interest rate cuts are coupled with rising prices in properties across Australia such as the 4.5 per cent rise in Melbourne, resulting in the housing bubble.

 

The best thing you can do is to seek assistance from a financial services company on complex mortgages. This is true no matter how extensive your experience might be. Companies, such as Biz 1, have the resources and expertise to find high-yielding mortgage opportunities.

 

Once you find a good property to invest in, it’s essential to give your loan a regular checking. This will not only help you keep track of its current situation, but will also allow you to make significant savings. Sometimes, you may find that your home loan needs some refinancing as external forces like the speculated interest rate drop discussed above can make a substantial difference for your overall financial situation. Here are some things to check about your home loan:

 

  • Are you paying an excessive interest rate?
  • Are your fees ridiculously high?
  • Do you have adequate service?
  • Does your loan provide you with features you need?
  • Are you paying for features that you don’t use?
  • Has there been changes in your financial circumstances?

 

With these guide questions, you can objectively evaluate if your mortgage is working well for you, thereby determining if you can get better offers. In addition, you can use mortgage calculators to figure out how much you can borrow or how much your repayments would amount to.

 

(Source: Analysts anticipate rate cuts to 1.5%, Your Mortgage, Mar. 3, 2015)