What are the lowest mortgage interest rates?
Mortgage interest rates are still near historic lows in Australia. According to financial experts, it is forecasted that interest rates could remain low for the foreseeable future. On average, Mortgage House has a rate of 4.49% pa on a variable rate loan and 5.24% pa on a fixed rate loan.
While mortgage rates have dropped overall, home prices haven’t risen. This has created a favorable market for those looking to purchase. However, the home price appreciation is slowing, and no signs are indicative of a housing recovery.
The mortgage industry is one of the most competitive industries in Australia. This means that competition between lenders is fierce. Lenders will often offer special deals to attract new customers. These include introductory offers where they give a lower rate for a limited period of time. Other times, they may offer a discount if you pay off your loan early.
There are two main types of loans available: Fixed Rate Loans and Variable Rate Loans. A fixed rate loan is an agreement between yourself and the lender which states how much interest you’ll be charged each month. The amount of interest you’re charged depends on the length of the term of your loan
So what does this mean for buyers and sellers? Prospective homebuyers that want to buy a house, will likely benefit and pay less in mortgage payments than they would have during the housing market’s peak. For those looking to sell their home, you might get more offers and close faster than expected.
Speaking with a lending specialist is the best way to determine the exact financial position one could be in for buying or selling. Take a look at the Mortgage House Best Rate Mortgage Calculator to begin quickly calculating and comparing the mortgage rates you are eligible to receive.