It is with a reasonable degree of confidence that I can say that interest rates have peaked (Bill Evans: The Weekend Australian: Sat 29th Apr: page 30).
At the start of this cycle, I suggested that you plan for a peak of 5.5% (and more recently 6% just to cover a worst case).
Interest rates, to you, have now peaked (if I am correct) at just under that 5.5%.
You should now budget for rates at this higher level for a reasonable period ahead.
The biggest uncertainty when buying a home or having a home loan is how to reasonably plan for the seeable future. I try to help you plan.
If you are buying, you can be fairly certain that whatever your payments are now – they should stay at that level or go lower*.
(*Lower because I have placed your loan with a bank who agrees to keep your rate closely aligned with their “new to bank” competitive offers.)
I have written again to every bank (worth considering) available to me and invited them to mend their ways and come on board with this principle – banks are run by people who have no interest in you – beyond the money they can make from you. My role is to act in your best interests alone – and help them mend their ways.
(You can read a copy of what I stand for and what I have written to them – Read Here)
Two things for you at this point in time:
If unemployment stays low at 3.5%-4% then there will be no bargains to be found in buying a house. You need to offer confidently and buy confidently. Whatever “pause and dip” we were due to have in housing is now almost certainly in the rear-view mirror.
As always if you’d like advice tailored to your own personal circumstances please call or email me anytime… It’s what I’m here for.
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