News

Low Rates Chance To Create Safety Net: Loan Market

By Nicholas MacIntyre

Loan Market News

Low Rates Chance To Create Safety Net 

(Thursday 18th September 2012)

Loan Market Melbourne broker Josh Gilbert said the current lending environment offered more certainty for borrowers and an opportunity to put measures in place for when rates inevitably go back up.A return to near historical low interest rates provides mortgage holders with the chance to create a safety net for the future, says leading mortgage broker Loan Market.

“Official interest rates are down to 3.25 per cent and there are forecasts of the Reserve Bank of Australia (RBA) taking rates even lower in response to a weaker global and domestic economic outlook,” Mr Gilbert said.

“With variable interest rates from lenders decreasing as well as short and long term fixed rates at appealing levels of under 6.0 per cent, borrowers are in a more comfortable situation.

“In turn, lenders’ assessment rates are also being lowered which is boosting borrowing capacity for home buyers.”

Mr Gilbert said the favorable borrowing conditions also enabled mortgage holders to boost their repayments and reduce the principal on their home loan.

“This is a golden opportunity for borrowers to create a safety net or a rainy day fund,” he said.

“Borrowers will have confidence that interest rates will be stable for the foreseeable future.

“Mortgage holders can make the most of this by setting up an offset account or making extra repayments of $10 or $20 a week, which can help reduce your home loan by years and potentially save you tens of thousands of dollars.

“Should interest rates increase again you will also have the capacity to redraw those extra funds paid into your safety net if the need arises.”

Article from Loan Market News

Up to Date

Latest News

  • ADDITION BY SUBTRACTION: WHY SOMETIMES MINIMALISM IS MORE

    Feeling that your home is lacking that certain ‘je nes sais quoi’? Perhaps it needs to lack a little more! Before setting off on a large-scale makeover, take a step back and assess your current decor. You might find that what you take away, not what you add, makes the biggest difference … Read more

    Read Full Post

  • THE ABSOLUTE ESSENTIALS FOR YOUR FIRST HOME

    Whether you are getting married, buying your first home or simply moving into your first real place of your own, you will likely find yourself with some shopping to do. A plan can help you stay focused and avoid unnecessary purchases, saving money and time (not to mention clutter) in … Read more

    Read Full Post