Happy New Year from us at The Mortgage Calculator! We hope that your festivities were filled with joy and happiness, but if you’re anything like us; you’ll be keen to get back to business as far as your mortgage application is concerned. Last year we covered a lot of information relating to interest rates and the current 1.5% that’s been in place (as dictated by the Reserve Bank of Australia) since early 2016 – but it’s a brand new year now, so what can you expect your rates to do over the course of the next 12 months?
Now you might feel that we may have already spoilt the topic of this blog post based on our featured image, but what we actually have for you information-wise could be considered a little bit of a curve ball. The first thing that you need to know is that 2016 saw an INCREDIBLE rise in Australia’s economy.
We’re not talking by a few million here, we’re talking several billions. The financial sector saw a huge benefit, as did the property market – in fact no fewer than a dozen individual industries saw growth. This may have led to a little inflation, so how did it take its toll on mortgage interest rates and their position for this year ahead?
At TMC we enjoy nothing more than staying one step ahead when it comes to helping our customers get to grips with rates on their mortgages and home loans – but what exactly should you expect for the next 12 months? Well, if early indications are anything to go by, you might even find yourself facing even lower rates by February, the likes of which haven’t been witnessed on Australian soil.
Unfortunately not everything is good news and as rates drop, the value of properties is expected to go up by 5% at the minimum in Melbourne – and up to 13% in Sydney. You could take advantage of cheaper policies all around by opting to move to a quieter region (such as Tasmania), where property values are expected to depreciate by the end of the first quarter of 2017.
But for those of you planning to buy in Sydney, Melbourne, or Brisbane; you can still take advantage of better lending agreements offered by banks – many of which can be expected to conform to the drop in rates. You might find some running at 3%, but these will often feature their own fixed rate schemes that can be taken advantage of.
Just be sure to play the field a little – even if you do hold your application off for another month or two in favour of finding the ideal mortgage for your needs.