Dream Loan

Home Loan Rates Could Drop To 2% By 2017

34C9BFA900000578-3617375-image-a-1_1464685631796

AMP’s chief economist, Dr Shane Oliver predicts that the home loan interest rates could drop to as low as 2% as a result of three cuts to the cash rate. Although the Reserve Bank of Australia is expected to hold the official cash rate at 1.75 per cent on Tuesday, a prominent economist is predicting three more cuts – two later this year and one in 2017.

The cuts mentioned above will be witnessed primarily in the second half of 2016 and the first quarter of 2017. A 2% home loan interest rate is optimistic, according to the economist. The fall in interest rate will be driven by the cash rate being reduced to 1% if the cuts continue to occur in August, September and the Q1, 2017. Needless to say, this will lead to a massive increase in the demand for property loans and it might turn out to be a win-win situation for financial institutions as well as the property buyers and sellers.

Last week it was reported that mortgage rates below four per cent on variable or fixed terms for up to five years were possible for borrowers, according to The Australian. Before the cash rate hit 1.75 per cent in May, the lowest five-year fixed home loan rate advertised was 4.34 per cent. With proper market research, it is possible to get home loan interest rates that are close to 3%. Most people do not research enough and they end up paying more interest.

The easiest way to work your way around home loans is to use the services of a home loan specialist who knows the market and has experience in closing deals. The future of the residential property market in Australia looks lucrative, but you should not rely completely on the predicted metrics. Plan your investments and wait for the right time to make your move. This will ensure that you get the lowest home loan interest rate in the market and get your home loan approved fast.

Posted by First Stop Lending  |  Comments Off on Home Loan Rates Could Drop To 2% By 2017  |  in Uncategorized
Copyright © First Stop Lending 2016 | ABN 48 108 178 785 | Australian Credit Licence 388439
Member of Mortgage and Finance Association of Australia
Home | Sitemap | Legal