As we embark upon the new year with resolutions (and maybe home loan plans in tow, it’s important to keep an eye on interest rates. They’re one of the most important elements in your home buying plans, as they will dictate how much you pay in the long term. With this in mind, let’s look at what could happen to these in the next 12 months.
Will interest rates stay low?
Louis Christopher of SQM Research correctly predicted the strong home value increases seen in Sydney across 2014, and is a voice to keep an ear out for in discussions about interest rates. In his Boom and Bust report for the 2015 year, Mr Christopher noted that interest rates were likely to remain low. In fact, he believes that steady low interest rates will be a primary driver of housing growth through the coming year!
This could mean great things for your property plans. Whether you are seeking a first buyer home loan or want to expand an existing property portfolio, low interest rates will make your mortgage process all the easier.
But could they go even lower?
In his roundup of factors that will impact the market in 2015, Cameron Kusher of RP Data noted that while interest rates are likely to remain stable, there is a chance of a further 25 basis point cut. This would be likely to stimulate even more interest in buying real estate, but could force the hand of higher powers.
Mr Kusher noted that lower interest rates would likely result in monetary policy moving to limit how much lending could be given out to investors – so perhaps staying put is the best option after all!
No matter what happens in 2015, it’s important to get the right advice when you decide to buy into the property market.
You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!