We now have the cheapest mortgage rates…ever!
If you’re asking yourself, “is now a good time to buy” as far as interest rates go, we’ve got the cheapest mortgage rates we’ve ever had. Let’s put it in perspective and compare dollars for dollars on what a mortgage interest could have cost you at 6.00% and what it would cost you today at 2.95% which should help you get an idea what a mortgage repayment will cost.
If you had a mortgage of $500,000 over 30 years at 6.00% your fortnightly repayment would be $1383 and you would pay a total of $1,078,764
If you had a mortgage of $500,000 over 30 years at 2.95% your fortnightly repayment would be $966 and you would pay a total of $753,732
New Home Buyers
Now that we have the cheapest mortgage rates we’ve ever had, then as far as interest rates go, there has never been a better time. However, there are other criteria to consider such as, employment stability, property prices and how much deposit you have to buy a home.
At this present time, we’re in Level 2 of our COVID-19 lockdown so you may not be fully confident with your employment and rightly so. You need to make decisions that are best for you and your family. Again, let’s put this into perspective. Compare what a mortgage would cost you, and what you are currently paying in rent.
Your landlord may not be passing on the low-interest rate savings to you (or maybe they are) but either way, you’re going to have to pay rent or pay your own mortgage, so compare both and see which one would be cheaper for you.
The challenge right now is property prices, and the longer you wait, the harder it gets because with inflation you will have to pay more if you delayed your purchase. Even with the cheapest mortgage rates, it will still come down to affordability, but more about how much you need to borrow to buy a home.
Cheapest mortgage rates for refinancing
If you’re already a homeowner and are considering refinancing there are a few things you need to consider, and one very important consideration is, will your current lender charge you any early repayment penalties.
As a rule of thumb, if you are on a fixed rate and you want to repay your loan in full and go to another lender, your current lender will most likely charge you an early repayment fee.
This is where an adviser can add real value by refinancing for you with no surprises, and an adviser could even talk to any new prospective lender about paying any early repayment fees for you. You really have to do your homework if you are going to refinance to a new lender.
If you are on a floating rate loan, you still may have some fees to repay such as any contributions your current lender may have given you when you took the loan out.
Please contact us anytime for new mortgage finance or refinance.