More ACT home owners are opting to fix their loans as borrowers continue to enjoy cheaper interest rates.
While the Reserve Bank of Australia today opted to keep the official cash rate on hold at 2.75 per cent at its monthly board meeting, there’s growing speculation among economists we haven’t seen the end of the cuts yet.
Michael Searle, a registered salesperson with Active Property and senior mortgage consultant with The Home Loan Centre, said most major banks were now offering fixed interest rates below five per cent and both new and existing home owners were responding.
“We’re seeing a significant shift in the percentage of homeowners who are now changing from a variable rate to a fixed rate,” said Mr Searle.
“Fixed interest rates are at historical lows - rates which haven’t been seen for over 50 years. So instead of trying to pick when interest rates will hit rock bottom before beginning an upward trend, why not contact us today to look at your options regarding fixing a portion of or your entire loan.”
Mr Searle noted the Canberra property market remained flat to a degree as the tumultuous election-year dragged on.
According to Annette Beacher, Head of Asia-Pacific Research at TD Securities, “If the AUD continues to trade closer to $US0.90 than parity, we believe the risk of additional RBA easing falls to well below 50 per cent. We remain of the view that a change of government with a strong majority is more likely to kick-start the economy and boost confidence, not another cash rate reduction.”
For the RBA’s rates decision visit http://www.rba.gov.au/media-releases/2013/mr-13-13.html