With so many economic commentators, (and quite a few homeowners for that matter), pondering the “will they or won’t they” question regarding the Reserve Bank’s approach to official interest rates at their next scheduled meeting on August 6th, we saw a move from one of ‘The Big Four Banks last week that provided some positive news.
In case you missed it, the NAB announced a surprise move for homes hunters by cutting their three-year fixed rate on home loans by 0.6 per cent. This step has taken the advertised price on these loans to below the key 6 per cent mark.
Not only did this announcement make NAB the first of the Big Four to offer a mortgage loan with a five in front, apart from the Commonwealth’s ‘Unloan’ product, but it also time this year that one of the major lenders has reduced their fixed rate loans in 2024.
It will be interesting to see whether this rate cut attracts more borrowers back to fixed rate loans, particularly given that a recent analysis by one of the online loan sources found that fixed rate loans only made up less than 2 per cent of new and refinanced loans on recent figures. This compares with a peak of over 45 per cent of loans back in the middle of 2021.
Whether you are in the market to purchase for the first time, or considering refinancing, it’s fair to say that any form of increased competition between the banks is a good thing.
In the meantime, if you think that buying, selling or both could be part of your plan for the remainder of 2024, now might be a good time to have a quiet chat with one of the team at Ian Reid Buyer and Vendor Advocates about your options. So feel free to give us a call on 9430 0000.
You’ll also find plenty of helpful tips for sellers in our free booklet, ”FATAL REAL ESTATE TRAPS EXPOSED”, so be sure to download a copy while you’re here.
10/24/2024 
