Where are interest rates headed?

November’s interest rate cut was the first movement of interest rates in 12 months but it is always a good idea to get expert advice before responding to new mortgage offers.

We had a period of rising interest rates so it’s understandable that there’s pent-up demand for cheaper mortgages. However, it is always wise to ensure that you sign-up for the deal that’s most appropriate for you.

At the moment banks and building societies are all competing heavily for mortgage market share, and this has led to variable rate discounts and the most attractive fixed rates seen for quite some time.  Some banks are also openly stating that they are willing to price match against their competitors.

We urge our clients to understand all their options before taking on more debt or refinancing.  There are many different policy and product differences, not just pricing between all of the different lenders so we always want to make sure that you get the best possible rate and product available to you.

Many bank economists also believe that there is at least one more 0.25% rate cut to come in the next few months, however as fixed rates are often priced well below the discounted variable rate, many economists also believe that now is a good time to consider fixing all or part of your loan.

Please contact us if you want any additional assistance with your finance for home, investment, equipment or business on 02 4992 3922 or laurie@addisonfinance.com.au . 

Laurie Plooy

Addison Partners Finance

2011 Platinum Sales Master, 2011 National Top Business Equipment Writer (PLAN Australia)