With the future market predicting a 5% RBA cash rate by the end of 2010 you can expect home loan interest rates to rise.
Loan rates are going to go up.
This means that now is the best time to take out a loan before the rate rise kicks in.
When the cash rate is at 5% then you can expect the home loan interest rate to be 7.25% ~ 8.00%. This will mean that you will be paying more than an extra $150 a month based on the average $250,000 first home buyer home loan.
Fixed interest rates mean that even if the interests rate rises your loan repayments will not change.
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