If you are thinking about refinancing a home loan in the Perth area, now may be the best time to take advantage of record low interest rates. We know that a lot of people are waiting to see if interest rates will go even lower, but that is a game that can be lost as easily as it can be won. So, why do we think now could be the best time?
Record Low Interest Rates
As you know, the RBA cash interest rate is at a record low 2.00% as of May 2015. As this is being written, many lenders are in the process of passing the rate drop to borrowers. Right now is an opportunity to save a lot of money per year on your home loan.
“But What if They Lower the Rates Again?”
What if they don’t lower the rates again? What if they raise them? A year ago, all economic indicators pointed towards interest rates rising at the end of 2014. Every expert in the field was thoroughly convinced that the economy was going to rise to a level where record low interest rates were no longer necessary. All of the experts were wrong.
What We Think
We can’t really address anyone’s individual situation here because everyone’s finances are different. But we can make some general observations that will be relevant to everyone. There is no guarantee that the economy is going to need more propping up by even lower interest rates. There is no guarantee that it won’t, either.
What we do know is that there are some great rates available right now. Also, there is a lot more to the cost of a loan than interest rates. If fees eat up all of the money you save on interest rates, why bother?
Call Us for a Consult
One of our professional mortgage brokers can help you find out how much you can save by refinancing your home loan. Call us today: (08) 9453 8888.