Interest Rates Predictions for Perth Mortgages
Interest rates for mortgage lending in 2009 may remain at their current low levels, or they may start to rise again, depending upon the world economic climate and the Australian property markets.
Home loan interest rates have fallen consistently since September 2008. While not always following the Reserve Bank moves, mortgage rates were cut nearly every time the RBA moved official rates downwards. The latest cut from the RBA was not passed on by the banks, but the majority of the previous cuts were. Home loan rates crept up and up in 2008. At their peak in August, the average home loan rate was close to 10 per cent. From the first cut in September, those homeowners on a variable rate mortgage found their interest rate falling and the savings considerable. However, home owners who fixed their rates at their peak watched in despair as rates fell month after month.
There is mixed feelings over where rates will go now. Some economists believe that even though some positive signs are showing the economy to be in good shape, the official rate will be cut further before the end of this year, due to rising unemployment and a lack of consumer confidence. Others believe we may be at the bottom of the cycle already. The overwhelming feeling is that mortgage rates will remain low for some time though.
What this means for home loan lending is unknown. If official rates are cut again, the banks may not pass this on to home owners. Many mortgage lenders are claiming that higher funding costs means they cannot always pass on the savings, and so home loan rates may go up. It is expected that any rate cuts will be small as will any rate hikes, but it is certainly a nervous time for home owners, and potential home buyers as they watch to see what rates will do over the coming months.
Finding a low rate for your mortgage is much easier with a local mortgage broker. The rate you pay depends upon the type of home loan you choose, the benefits of the home loan and the terms of the loan.So, a home loan with limited features will have a lower rate than one with lots of added benefits. It is a personal choice, and your local mortgage broker can help you find the right home loan.
Talk through your options with a mortgage broker, and enjoy the assistance provided. To find your nearest broker simply call
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