Interest Rate Christmas Rate

Market Insights
9 years ago
1 minutes

The November cash rate announcement has left those borrowing with a variable rate laughing their way to christmas shopping.

The Reserve Bank announced that the rate would be held at 2.5%, continuing the previous trend of the past 15 months. The rate has remained unchanged since August 2013, This consistent hold has allowed those on variable rate loans to save a lot of money. 

The ability to make extra-repayments and safer redraws will continue as predictors believe that the rate will not increase for until the middle of next year (2015), and at that point, the could be a hike in the rate. 

“China’s growth has generally been in line with policymakers’ objectives, though weakening property markets there present a challenge in the near term,” The Reserve Bank said,

“Commodity prices in historical terms remain high, but some of those important to Australia have declined further in recent months,” it said.

These record-low interest rates, coupled with the increasing demand outweighing the supply, means the property market has never been stronger. All signs are pointing up, so it is now time to make that investment.

House price growth and strength is increasing by the weekend, with the likes of The Bank of Melbourne offering seriously competitive home loan special to date. Remember, that if you are considering entering into a home-loan, or buying your first property, research is key - search around and find the loan, rate, and conditions that are right for your circumstances.

If you are considering having buying your first property, or looking for your next investment, stay tuned to ApartmentDevelopments.com.au for our variable and fixed rate loan comparison coming next week!

Christmas presents will surely be better this year!