If you are looking for a home loan in Perth, you probably know about the recent Reserve Bank of Australia (RBA) decision to lower the cash interest rate to another all-time low: 1.75%. The record low interest rates are providing opportunity to both investors and owner-occupiers.
While low interest rates don’t mean you can borrow more, they do mean you can pay off your loan a lot faster. The first five years of a loan are where you pay the bulk of the interest. A low interest loan for the first five years is an incredible situation.
A Word of Caution
If you know you will be able to afford the repayments, it is a great time to buy a home. However, it is worth mentioning that the reason the interest rates are so low in the first place is because the RBA feels the economy needs an artificial stimulus to stay healthy. Consequently, you do need to give a lot of thought to the decision to buy a home right now.
The main area of concern is employment because we are transitioning out of the mining boom. As long as you are employed, you will be able to continue making your home loan repayments. It is important to accurately assess the job sector you are working in right now. If your prospects for long-term employment are good, then you can probably buy. But if you are in a volatile field like the resources industry, you will need to have a “buffer” of as much as a year put away to safely buy a home or an investment property.
Home Loan Interest Rates in Perth
Currently, home loans in Perth are being written for five years at 5%. This is an incredible deal and gives you an opportunity to enter the market inexpensively or pay off the principal on your mortgage faster.
Call Purely Finance Today
To learn more, call Purely Finance today: (08) 9453 8888.