It seems that the outlook is becoming increasingly positive for all those aspiring homebuyers who have been holding back until we see the end in sight for the recent run of increases in interest rates.
As we mentioned in our most recent APRIL MARKET UPDATE, we have been seeing growing signs that the overall property market is in the process of stabilising after the uncertainty that was being driven by multiple increases to official interest rates by the Reserve Bank.
What has been even more promising is that in recent days the Banks have begun reducing their fixed rate mortgages, a further indication that the financial markets are betting that the end is in sight of the Reserve Bank’s attempts to slow inflation by raising official interest rates.
In the past month we have seen the ANZ Bank reduce their three-year fixed rate mortgage by 0.6 percent to 5.49 percent, whilst the Commonwealth Bank reduced their rates on the same product by 0.4 per cent to 5.59 per cent. It’s not just the members of ‘The Big 4’ taking this action either, as both Macquarie and ING have announced reductions to their fixed rate offerings as well.
It’s worth noting that a fixed rate mortgage is not for everyone. Whilst some borrowers will find the idea of having certainty over your repayments appealing, a number of financial commentators are forecasting that the Reserve Bank could be reducing official interest rates again within the next twelve months. This would mean reduced mortgage repayments for those with a variable loan, but could also leave those with a fixed rate loan paying the same amount as interest rates fall.
With this in mind, our recommendation is that before you lock in any decisions about your mortgage, it is worth talking with an independent mortgage broker. Not only can they help you find a loan that best suits your individual priorities and circumstances, but their service won’t cost you any extra, just like having a Vendor Advocate from Ian Reid.
So if you are weighing up a move in 2023, whether buying, selling or both, don’t hesitate to give one of the team at Ian Reid Buyer and Vendor Advocates a call on 9430 0000.
You’ll also find some helpful tips in our free booklet, FATAL REAL ESTATE TRAPS EXPOSED.
11/28/2023 
