You need to take a macro view of interest rates to work out the future. My view?
Short-term fixed mortgage rates have started to increase in anticipation of a June increase in the official cash rate, which now looks almost certain.
As expected the official cash rate (OCR) remained unchanged today. Better still, Big Al (the "Gov") left the door open to not start pushing rates up until later in the year.
Does it make sense to keep renting, or are you in a position to buy? Buying your first home will almost always make better sense than renting.
I share my view on stretching yourself into a big mortgage. Worth it or not?
For the past 12 months mortgage rates have been at historic lows.
In previous posts we have shown you how to save tens of thousands in mortgage interest by leveraging short-term rates and repaying your mortgage faster. In this post we show you that long-term rates are overpriced, and that whilst mortgage rates will increase, it won't be nearly as fast as the media banter would suggest.
Too many homeowners are preoccupied with mortgage rates when they should be focused on repaying their debt as fast as possible.
The Reserve Bank has committed (as much as it can) to holding rates low for the foreseeable future and why wouldn't they?
The fee is called a “mark-to-market” fee and is hidden in the small print of all bank mortgage documents. It is a calculated fee that is based on the size of the mortgage, how far interest rates have fallen since it was fixed, and its remaining fixed term when it is repaid.
Stop, breathe deeply, think. If you haven't fixed yet ... don't panic.
On March 12, the Reserve Bank decreased the official cash rate (OCR) by 0.50%, from 3.50% to 3.00%.