Australian Mortgage Rates at a Record Low


Understanding Mortgage Rates

If you own a property, it is a good idea to stay aware of how mortgage rates are moving. If you are someone who would like to purchase and finance a property, it is even more important for you to know how those rates are moving. After all, if it looks like rates are at historically low levels, then that signals that the present is a good time to apply for financing. However, if the rates are at relatively high levels compared to past numbers, then it may be a good idea to wait a while to determine if other factors may cause rates to reduce in the future.

Knowledge of mortgage rates trends is important because it could have a significant effect on your costs and your bottom line. Most of the time, the information is available somewhere. You will just have to make the required effort to access the information on a regular basis, and see where the numbers are heading.


Mortgage Rates in Australia

News reports have taken note of the fact that fixed mortgage rates are currently at historic lows in Australia. This opportune situation for prospective property owners has come about for a number of reasons. One main reason is the fact that banks and lenders in Australia have been more aggressively competing to increase their customers and loan portfolio. As the banks and lenders offer discounts, lower rates and more attractive packages in order to attract customers, the numbers involved have tended to go down until they have reached the state they are in now.

It remains to be seen how long this will be the case, but the expectation is that mortgage rates should remain low at least for a few more months. So if you are looking to purchase property or add to your properties, now could be a good time to start investigating. One can look even more narrowly at particular geographical areas in Australia to further consider how the rates might affect purchasing decisions.

Take New South Wales. The expectation is that these low NSW mortgage rates will cause more property buyers to consider getting into fixed rate mortgages, given the very affordable rates. Add to this the fact that the European Central Bank has recently moved to cut interest rates, which is expected to have ramifications for Australian lenders. This extra influx of liquidity at the international level could either result in increased profits for Australian banks or even lower interest rates on their part, or both. If the latter comes true, then you can expect that borrowers in New South Wales, as well as the rest of the country, will find themselves with increased opportunities to reduce their costs.

Reduced costs tend to come with increased purchases. So if you are selling property in New South Wales, it becomes more possible for property demand to increase, at least over the next several months, barring any unforeseen negative factors.


NSW Mortgage Corp works with a range of lenders, allowing you to find the best  mortgage rate possible for your situation. Whether you are interesting in buying a new property, refinancing or another loan package, call us today on 1300 137 778 for a free consultation or enquire online and find out how we can help you.

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