The Australian Prime Minister Scott Morrison (Scott Morrison) said it would be a happy day for Australian homeowners over the next three years – if you are lucky enough to have a set of house. The Reserve Bank of Australia Governor Philip Lo (Philip Lowe) and economics say low interest rates will continue.
Prime Minister Morrison (Scott Morrison) said interest rates on home loans are expected to remain record low for at least three years. On Friday, the Prime Minister made the prediction after Dr. Lowe and Finance minister Steven Kennedy joined the cabinet to discuss economic in the post-epidemic era. "The unemployment rate is expected to exceed 7 per cent in the next two years, economic the biggest challenge to employment. "Prime Minister Morrison said. "Interest rates are very low and are expected to remain low, financial markets are performing well and interest rates are at what we can expect for at least three years. "
A record low interest rate is, of course, a sign that economic is in greater trouble as unemployment rises and businesses fail. But for those who work steadily, low interest rates also offer a huge opportunity to clear debt faster. And that's good news for first-time home buyers, as real estate prices in most capital cities are falling or stagnating. The central bank set the official cash rate at an all-time low of 0.25 percent, prompting a sharp drop in floating and fixed-rate mortgage rates. As a result, many housing loan borrowers are seeking refinancing because of low interest rates and the new crown epidemic. This is an option for the Reserve Bank of Australia to urge homeowners to consider getting better deals during the pandemic.
"I encourage people who haven't seized the opportunity to look at their mortgage rates and look for better deals ," Dr. Lowe said last month. "For years, in many open forums, I've been encouraging people to look at the rates they get from banks, and if they do n' t get very low rates, knock on the door and a Zoom meeting with their bank brokers to ask for better deals ," he said. "If this bank refuses, go to another bank. "
Housing prices in capital cities such as Sydney are expected to remain stable. )
According to RateCity data, There are currently eight smaller lenders in Australia offering a home loan rate of less than 2 per cent. The lowest floating rate on the market is 1.95%, The lowest fixed interest rate is 1.98. "Seeing the list of lenders offering less than 2% interest rates continue to grow ," said RateCity Research Director Sally Tinder (Sally Tindall), A victory for the owner. "Some of these interest rates below 2 per cent have unusual terms and conditions, So they don't fit everyone. We expect more banks to join clubs below 2%, But the big four are unlikely to get membership soon. "Based on RateCity data, If you switch to 2% loans based on A $400,000 house loans to cover principal and interest, The average homeowner can save about $250 a month.
But for those who have had trouble repaying their loans after a pay cut or job loss, there are reports that banks are trying to hit them by raising interest rates after offering mortgage honeymoon. "These clients should be cut, not raised. It seems unfair and reasonable to ask people to pay more interest when they are in financial trouble ," Ms. Tyndel said. "They need real help from banks, not bigger interest bills. Record low interest rates also mean government borrowing is cheaper, and the Reserve Bank of Australia urged states to borrow money for infrastructure projects to boost economic. Prime Minister Morrison said on Friday :" As I noted earlier, Australia's investment in fiscal intervention in this crisis is well above 15% of our economic. "
