Further discounts are expected on the country’s already historic low home loans rates next month.
Economists are almost certain that there will be a cut in the official cash rate when the Reserve Bank of Australia next meets on August 2.
The drop will largely depend on June quarter inflation data. If it comes back on the low side, which is expected, the cash rate could be dropped by 25 basis points to a new historic low of 1.5 per cent.
Many lenders have already chosen to lower their rates since the Reserve Bank’s last interest rate cut in May this year.
There are some great mortgage deals available at present and anybody with a variable home loan rate above 4% should talk to their lender or seriously consider hunting around for a better rate.
And what about fixed rates?
While there are some great deals on fixed home loans rates at present, there is always a risk that there will be a better deal around the corner.
There are no indications that interest rates will go up anytime soon, with more cuts expected after August’s predicted drop.
Some have forecasted that the official cash rate will be as low as 1.25 per cent by the end of the year and could even go as low as 1% in 2017.
For help finding the home loan packages talk to the team at Professionals Finance.