Over the past few months, we have seen an interest rate war emerge between banks, offering record-low options, particularly when it comes to home loans. This comes in the hope of spurring on an economic recovery, starting within Australian households.
Following the Reserve Bank of Australia’s final meeting of the year, they have lowered their Cash Rate from 0.25% to 0.1%, the lowest seen in history. RBA Governor Phillip Lowe expects these rates will hold at the current level for up to three years.
With this change, we expect further stimulus measures from state governments within the coming months.
New purchases are set to skyrocket with the Victorian Government committing $5.4 billion to home building grants. New homebuyers can take advantage of the extended $20,000 First Home-Owner Grant for regional Victoria up until 30 June 2021, while other buyers can take advantage of the new Stamp Duty Concessions of up to 50% for homes valued up to $1 million.
Current homeowners who are making repayments on an owner-occupied home loan with anything higher than a 3% interest rate should take this opportunity to review their loan, with home loan fixed rates currently at an all-time low.
If you’re interested in taking advantage of these new interest rates, contact a lending advisor from Partners Wealth Group today on 1800 333 143 to see how we can assist with getting your approval in place so you can take advantage of this new interest rate war.