The cash rate is currently sitting at 1.75% and some lenders are set to drop their variable home loan below 4.00% p.a.
But while it’s hard to imagine rates getting much lower, it looks like that‘s exactly what could happen.
How low will rates go?
Westpac’s chief economist Bill Evans has forecast another 0.25% p.a. cash rate cut in the near future, and he expects that the cut will delivered in August following the release of the June quarter inflation report.
Commonwealth Bank economist Michael Blythe has gone one step further and predicted that there will be two rate cuts before the end of the year.
What can you do to get the lowest rate?
Despite where rates are headed, it’s always a good time to review your home loan and ask whether or not interest rate savings are being passed on and you’re getting the best rate available.
There are plenty of great home loan deals to be had right now and what some borrowers don’t realise is that it only takes a phone call to make interest rate savings in some circumstances.
Have a chat to your current lender and ask if they can improve their rate or, if you’re considering switching home loans and aren’t sure where to find the best rate, it could be worth chatting to a mortgage broker who can do all of the hard work for you.
For any help with finding or comparing home loans and getting the best rate available, get in touch with Professionals Finance.