At the final Reserve Bank of Australia meeting of the year, the decision has been made to keep official interest rates on hold. It remains at a record low 0.75%pa. As we draw towards the end of 2019, let’s reflect on the past 11 months – and take a look at what’s in store for 2020.
It’s been quite a year for those people who have a mortgage (or are looking to obtain one). The official home loan cash rate has been cut three times this year, in June, July and October. According to the latest Mozo data, this has resulted in the average investment home loan rate being over 0.65% lower than 2018.
Last week, RBA Governor Philip Lowe said that official cash rates are likely to remain low for an “extended period”. There is even talk of the official cash rate being as low as 0.25% in 2020. As well, QBE’s latest Australian Housing Outlook says 2020 will see values rise, particularly in state capital cities.
So what do these Low Interest Rates mean for you?
If you’re looking to buy a home, 2020 could be your year. Whether you’re looking for a first home, buying and selling or an investment, there are opportunities ahead. The last part of this year has seen record low cash rates and the easing of lender restrictions, which have lifted buyer confidence.
If you currently have a mortgage and haven’t had it reviewed in several years, the chances are that you haven’t taken full advantage of the low interest rates on offer, now would be a great time to do so. As long as your finances are in order, there’s good reason to expect a better deal is on your horizon. Re-looking at your mortgage options could be a very rewarding New Year’s resolution.