Each year hundreds of thousands of homebuyers nationwide debate the merits of fixed versus variable rates when it comes to getting their home loan.
The current global market volatility and recent interest rate hikes have heightened interest in the debate leading to even more rate scrutiny.
Homebuyers are now more aware that loan finance decisions should be thoroughly explored. As a result, they are seeking the advice of home loan specialists who can help prioritise goals, examine financial circumstances, assess need for security and, ultimately, decide which side to take in the Great Rate Debate.
Commonwealth Banks Head of Retail Products, Michael Cant, takes the role of adjudicator to mediate the case between fixed and variable rates.
What is the difference between fixed and variable?
>>>> The Great Rate Debate – Yahoo7 Money Matters.
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RENTS have recorded their highest increase since 1988 amid fears the rental crisis will only get worse as the impact of the global recession takes hold.
Latest figures from the Australian Bureau of Statistics show the annual rate of growth in rents across the country has jumped to 8.4 per cent in the year to last month, up 2 per cent from 2007. The statistics also reveal the increase in rents has jumped from 5.4 per cent to 8 per cent in Sydney, 11.2 per cent to 12.2 per cent in Perth and 8.6 per cent to 10.1 per cent in Brisbane. Adelaide also recorded an increase in residential rental growth of 4.7 per cent to 5.4 per cent and Melbourne jumped to 6.6 per cent from 5.4 per cent.
BIS Shrapnel senior economist Jason Anderson said the rental market was only going to get worse as the country’s economy faced a possible recession. He said the roots of the rental crisis before the economic downturn were the significant increase in immigration and high interest rates that left a shortage of about 100,000 houses.
But falling interest rates were yet to have an impact on the rental shortage because construction of much-needed properties had decreased because of worsening economic conditions and higher unemployment. “This means the shortages are going to get worse over the next two years,” Mr Anderson said.
From: The Australian January 29, 2009
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HOMEOWNERS will get another boost this week with the Reserve Bank of Australia expected to slash a further 0.75 per cent or more from its interest rate.
The move will lower the bank’s cash rate to 3.5 per cent, bringing variable rate loans to around 5.5 per cent or 6 per cent.
Economists already are pencilling in further RBA cuts to a low of 2 per cent. Macquarie’s Rory Robertson said the RBA would cut the rate by a full 1 per cent, or 100 basis points.
>>>> Interest rate cut of 0.75% or more expected this week | The Courier-Mail.
THE Reserve Bank has been freed from the threat of inflation, allowing it to cut interest rates dramatically next week as it works to keep the economy out of recession.
Economists are predicting a cut of up to 1 percentage point on Tuesday, a move that would take the official cash rate to a record low of 3.25 per cent.
And some expect interest rates to fall to 2.5 per cent by midyear.
>>> RBA tipped to slice its key rate.
