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Yes – you heard that correctly.

Since January this year only Melbourne and Perth house price trends are negative.

Sydney – up 1.8%

Brisbane – up 2.1%

Adelaide – up 3%

Melbourne and Perth have their own temporary Covid issues.

The interest rate on your home loan should now be well into the 2’s – and will head lower in coming months.

Anticipating a further cut in the cash rate on Melbourne Cup day, banks have been lowering their rate for new business in the last two weeks.

When interest rates decrease, house price increases – a fundamental law.

I can say that I have not been this busy for 5 years.

It doesn’t matter what had been thought or said going into Covid – the market has spoken.

When Covid hit – the Reserve Bank said it would put enough cash into the economy to bring the 3-year bond rate (one of borrowing rates for banks) down to 0.25%.

The 3-year bond rate is (today) 0.14%.

If a bank is lending at 2.64% then they are making a margin of 2.5%.

Banks can make profit on a margin of 1.8%.

Banks are doing just fine at the moment (especially as the Covid losses are now diminishing).

If your home loan is NOT with a bank that has a written agreement with me to reduce the rate for existing clients back to their current new client rate, then it is probably time to refinance.  

As always if you would like advice specific to your own personal circumstances, please call or email anytime, it’s what I’m here for.