There’s a buzz in the air among the finance industry whether the May rate will happen or not! According to some experts they believe interest rates will drop. They say that the RBA are predicted to slash rates by an amazing quarter percent at the next meeting
The reason behind this is that unemployment is on the rise therefore growth stays below trend, so rates will have to be cut. As economic growth is slow it resulted in the first rate cut in February, so hopefully this second one could stimulate the start of an economic pick up aiming to get Australia on the same lines as some monetary policies in Europe and other countries.
Australia still has a high interest rate compared to other international structures, however rates are still low according to past history.
So, hopefully we can get on track with the rest of the world as that evolves it looks like we are catching up with them.
This fall of course is going to attract property investors and homeowners as the fixed rate home loan will be snapped up. Wise property investors will be applying to lock in for a long time instead of the usual 3 – 5 years.
So if that dream home has seemed out of reach in the next few months you must strike while the iron is hot. For investors it’s the time to either sell up and re-invest or add on to their portfolio and shop around for the best lock in deal.
There is going to be some pretty high competitive rates among lenders as investors and even first time buyers take full advantage.
At Pierre Finance we tailor your home loan to your exact objectives and financial situation. The team here are dedicated in service and searching the best possible solution for you every step of the way.