No certainty of further rate cuts

No certainty of further rate cuts

by 0 comments

With figures at an attractive level, there is no certainty of further cuts according to Smartline Personal Mortgage Advisers.

Smartline’s Michael Daniels is encouraging investors to lock in their mortgage, after calculating the potential savings, with some investors set to save up to $5,500 per year by securing a mortgage at the lowest fixed rate available.

For one major bank, over the past 14 years the basic variable interest rate has averaged 6.85 per cent per annum, he said. The same bank now offers 4.99 per cent for a three-year fixed rate, equating to savings of $5,500 on a $300,000 mortgage.

“This is the very reason why a third of our clients are taking out fixed rate loans,” said Mr Daniels. “When you crunch the numbers on the savings, it’s a pretty compelling argument.

“There are many more who are considering a fixed rate, but who don’t want to lock themselves into a fixed rate in case rates drop further.”

He noted this is the most common concern for those looking to fix, but argued, “While fixed rates might drop a little bit further – but I wouldn’t say it’s a certainty – the fact is the fixed rates currently on offer are historically low”.

In fact, he said, when fixed rates go up it happens more quickly than when they come down.

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

With a combined sales volume of over $14 billion in 2017, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
How Peter Starr went from the top 100 to the top 10 in real estate

McGrath agent Peter Starr joins host Tim Neary for this episode of Secrets of the Top 100 Agents to unveil how he jumped a mammoth 57 place...

View all podcasts

How difficult is it to maintain a good work/ life balance?

Very – if I’m having balance my competitors are working (19.8%)
Not – I schedule the time into my calendar in advance (18.5%)
A little – It’s scheduled, but something always crops up (38.3%)
Work/ life balance – what’s that? (23.5%)

Total votes: 81
The voting for this poll has ended on: June 26, 2017
Do you have an industry update?