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With the Reserve Bank cutting interest rates to their lowest percentage since the peak of the global financial crisis in 2009, it’s a happy time for Liverpool real estate buyers and home owners alike. While so far the major banks have neglected to pass the October 2nd rate cut on in full, rumours of a possible back-to-back rate drop next month cement the need to think about what falling interest rates may mean for you.
Lower interest rates mean it’s a great time to buy; borrowing is easier and your mortgage interest will be lower and more manageable. But beware, this is not the time to go overboard and purchase a property far above your means. Don’t make the mistake of thinking that a drop in interest rates now means you should start looking up into higher price brackets. Buying within your means will ensure you don’t get caught out trying to pay off and maintain a huge house you can’t afford if the interest rates rise again in the future.
If you’re already in the property market, you may like to view the rate drop as an opportunity to get ahead and start reducing your debt. If you’re managing to make your mortgage repayments easily enough now, why not continue paying the higher rate? It’s easier than calling up your financial institution and asking to pay the new minimum payment; simply ignore the rate cut and you won’t even notice that you’re creating a gaping hole of equity and paying off your mortgage much sooner.
Don’t leave your hard earned dollars to chance. If you’re at all concerned about your financial position, or would just like some general money-saving advice, it may be worthwhile contacting a financial expert to discuss your situation in greater detail. If you’re ready to buy and want to take advantage of the lower interest rates now, please visit us at Professionals Casula Real Estate.