Mortgage interest rates are at record lows
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Posted on: 29 Oct 2019

Mortgage interest rates are at record lows

Australia's official interest rate is quickly approaching zero, but if you are in the market for a new home and have not yet taken out a mortgage, you may already be too late.

The majority of the impact of very low rates, now at 0.75 per cent in Australia, has already occurred.

This means that current mortgage borrowers are better off and new mortgage borrowers are likely to be worse off.

The reason? Current borrowers have already collected capital gains from house price increases, while also benefitting from lower interest payments.

If individual lenders were unable to pass rate reductions on in full, they were able to refinance with an alternative lender.

However, new borrowers face harder times.

Full Article

Scheule, H. (2019, October 21). Mortgage interest rates are at record lows but there is bad news for borrowers. Retrieved from https://www.abc.net.au/news/2019-10-22/will-australian-mortgage-rates-become-negative/11623088