Interest Rates
With the current Reserve Bank Cash Rate at 3.60%, a fair rate for an owner-occupied home loan is currently between 5.4% and 5.6%, depending on the level of equity you hold in your home.
Typical bank deposit rates for savings are sitting at 3.80%, and the 2- and 5-year US Bond rate is currently at 3.63%.
What does this mean for you?
We are now on the cusp of Australian banks being unable or unwilling to pass on any future Reserve Bank rate cuts in full. The market is delicately poised, and careful consideration will be needed going forward.
I will continue to guide you through these times, just as I always have.
First Home Buyer Scheme – Big Changes from 1st October
From 1st October, an expanded First Home Buyer Scheme comes into effect. Here’s what’s new:
- No limit on the number of places available.
- No income limits for applicants.
- Significantly increased price caps, varying by state.
- Available to Australian citizens and permanent residents with just a 5% deposit.
- No Lenders Mortgage Insurance (LMI) and, in some states, no stamp duty.
You will need to reserve a place in the scheme and then secure a property within 90 days.
⚠ A word of caution:
At 95% borrowing, it will take time to build equity. Make sure you choose a home you want to live in for a while, as your next purchase may come with significant stamp duty and (potentially) mortgage insurance costs.
I’m here to guide you through the process and ensure you make the right decision for your situation.
If you’d like to discuss how these changes may affect your plans — or if you’re ready to explore your options under the First Home Buyer Scheme — simply reply to this email and we can arrange a time to chat.
Alan Heath – Ask Alan Mortgage Brokers Brisbane