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interest rate cut – what’s in it for you?

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blog_interest_ratesLast week the Reserve Bank lowered the cash rate by 25 basis points. This brings the official interest rate to a record low of 2.5%. So what does this mean for home buyers and the real estate market?

It is predicted lower interest rates will drive up the price of homes, which is good news for vendors. Higher pricing has the potential to motivate others to sell, increasing the number of properties coming on the market. With interest rates so low, it is likely there will also be more people looking to purchase property. Others may find that with the increased prices and low interest rates they may find themselves in a better position to sell.

But what about buyers? Buyers will reap the benefits of lower interest rates and more properties on the market, so there’s something for everyone. There are also predictions there will be one more interest rate cut this year, most likely in November.

For those looking to buy, now seems like a great time to be signing up for a new home loan while the rates are low, but make sure you do your research first. It may seem a good time to lock in to a fixed rate loan but shop around and speak to your mortgage manager or broker about what is the best solution for you. Remember, the banks advertised rates don’t often include any discount or package rates that they may be able to offer.  Make sure you are getting the best deal for you, don’t be talked in to what seems like a great deal. Don’t be afraid to ask for further a discount, some banks will give you a further discount that you may miss out on if you don’t ask.