Westpac chief economist Bill Evans thinks the Reserve Bank of Australia will cut the official cash rate by 25 basis points in August then again in November.
While that’s good news for your mortgage repayment, there’s a down side, reports news.com.au.
Rates drop when the economy is slowing and Westpac is predicting a slowdown in Australia this year and in 2020.
So a rate cut would “cushion the downturn” and also stall further property price drops in the fast cooling Sydney and Melbourne markets.
Here in Queensland however things are looking a touch rosier with the Queensland Government still espousing strong jobs growth in its latest economic review.
Even if an official rate cut doesn’t happen, competition in the mortgage markets remains fierce.
So if your mortgage doesn’t start with a 3 you could be paying too much. Shop around or even ask your current lender to give you a cheaper rate. All you’ve got to lose is your interest payment!
Want to take advantage of historic low rates? View our current listings for sale.