What’s the future?

By Navjeet Singh Matta Full Accredited Member of Mortgage and Finance Association of Australia; also Director, Gain Home Loans

For the fourth month in a row, the reserve bank left the cash-rate unchanged at 3%. It’s good news for the public; however, it remains to be seen how long the Reserve Bank will wait to lift the rates. Most economists are predicting that there will be at least two rate increases before the end of this year, but they are also predicting that the rate increases will be small ones which will not impact too much on the monthly repayments. In the last few weeks, all lenders have been increasing their fixed rates creating panic among home loan borrowers. They are under the impression that the variable rates are going to go up, so they are tossing up whether they should start fixing their mortgages. I personally think this panic is un-called for. The economy has not improved much; people are still losing their jobs. But having said that, the next move in the interest rates is definitely going to be an increase. However it won’t jump from 5% to 7% straightaway; rather, it will be a slow and a gradual climb. It might take upto 2 years to reach that level. So if you have to pay 7% after 2 years then why pay higher rate now? But again, everybody’s situation is different and some people might be better off with the fixed rates depending on their financial situation or other factors. You are free to discuss your situation by calling me on 02 9676 3417 or emailing me on nsmatta@gainhomeloans. com.au. Our services are absolutely free.

Will House prices be affected after the grant ends? There is no doubt that the extended grant has pushed the house prices up however the other two major reasons why property prices have gone up are, low interest rates and high rentals. High rentals have prompted people to buy homes to get rid of their landlord and also investors have joined the bandwagon to get high yield on their investments. We all know Australia has not been affected as much as US and some European countries. The outlook is much more positive here. I don’t really see property values going down, they might remain stable though. We provide free RP Data property reports; please send me an email on info@ gainhomeloans.com.au and a free report will be emailed to you within 24 hours. Please mention the property address or the suburb you are interested in and your contact number too.

Why the structure of your Home Loan is the most important part

I can’t emphasise enough, that the home loan structure is the most important part of it. Yes, in most instances you are allowed to make extra repayments, which reduces the loan term but you should make every dollar and cent work for you rather than for the bank. We at Gain Home Loans specialise in structuring the mortgage to suit everybody’s situation. Call us on 9676 3417 to discuss your situation.

Are you looking for the right Home Loan?

With so many different home loan products, lenders and their ever-changing policies, it can be a very difficult task to choose the right Home Loan. However mortgage brokers like us will save a lot of time and can find the right home loan for you. We have helped hundreds of families choose the best Home Loan as per their situation. In a few simple steps we will provide you with free, independent information to help you make your decision easy by finding the best home loan that best fits your needs. We are very centrally located and only 2 minutes’ walk from the Westpoint Shopping Centre. Our services are absolutely free.

Contact us at GAIN HOME LOANS, Lvl 1, 9 Flushcombe Rd, Blacktown, visit our Website www. gainhomeloans.com.au or call us 7 days a week on 02 96763417.

Disclaimer: Any advice given in this article does not take into account the personal needs and objectives or financial situation of the reader. The reader should consider the appropriateness of this and seek professional advice before making a decision whether to acquire or continue the products and services mentioned.