Sign of the times

With all the speculation around what is happening with the interest rate, people are getting their knickers in a knot. Here is some news that may relieve fears for the time being – There are currently a few lenders on the market now offering 3 year fixed rates below 4%!

What does this mean for home loans? Daniel Pym from Loan Market stated in an interview “It is an amazing interest rate that I have not seen before in my 15 years of broking”. In a statement by Glenn Stevens, Governor: Monetary Policy Decision he noted that long-term borrowing rates for most Aussies’ and creditworthy private borrowers remain remarkably low. He also mentioned that Credit is recording moderate growth overall, with growth in lending to the housing market broadly steady over recent months.

There are certainly some good signs that rates could remain at record lows for up to 3 more years.