Get Ready To Buy Your Dream Home; he is a helpful “5-Point Mortgage Approval Checklist,” written by a mortgage specialist.

The latest economic data indicates that Interest rates are anticipated to decrease as we approach the end of 2024, presenting a favourable opportunity for prospective homebuyers. The upcoming Spring and Summer seasons could be the ideal time to turn your homeownership dreams into reality. Now is the time to take proactive steps by engaging with your mortgage broker early to guarantee your readiness. By seeking clarity on essential matters and addressing any concerns promptly, you can establish a solid groundwork for a seamless home-buying experience.

2024 Australian Interest Rate Outlook.

I’m asked daily by my clients, “How high will Australian Interest rates go in 2024?” Or “When will interest rates drop?”

To answer the question, we have to consider many factors, including economic indicators, global trends, and the Reserve Bank of Australia's monetary policy media releases. The decision on interest rates is based on factors such as inflation, employment, and overall economic well-being. Considering the current global uncertainties, the Reserve Bank of Australia will likely adopt a cautious approach to maintain stability and encourage economic progress. Financial market observers eagerly await any signals or announcements that could reveal the path of Australian interest rates this year.

Reserve Bank of Australia holds the cash rate at 4.35%.

Reserve Bank of Australia decided to hold cash rates at 4.10% for three consecutive months.

In the September meeting, the Reserve Bank of Australia maintained the cash rates at 4.10%. This marks the third consecutive month the cash rate has remained at this level.

Australians are reaching the top of the interest rate cycle, with the Reserve Bank of Australia holding the cash rate for the 3rd time in 5 months at a cash rate of 4.10%. This comes after 12 out of 13 months of interest rate rises since May 2022.

At its meeting today, the Reserve Bank of Australia Board decided to increase the cash rate target by 25 basis points to 3.85 per cent. It was expressed that inflation in Australia has passed its peak, but at 7 per cent is regarded to be too high, and it will take time to be back in the target range. Therefore, the Board decided a further increase in interest rates was warranted today

Reserve Bank Australia holds Cash rate target of 3.6%

Reserve Bank of Australia (RBA) at its Board meeting today, decided to leave the cash rate target unchanged at 3.60 per cent and the interest rate on Exchange Settlement balances unchanged at 3.50 per cent.

Reserve Bank Australia (RBA) March Monetary Policy Meeting.

RBA Board, during its Monetary Policy meeting today decided to increase the cash rate target by 25 basis points to 3.60 per cent. This is the tenth consecutive increase since May 2022

The Reserve Bank of Australia (RBA) met on the 8th of February 2023 to determine the Cash Rate for unsecured overnight loans for banks, which impacts the interest rates passed onto the mortgage home loans for Australians.

Reserve Bank Australia 6 December 2022 Media Release 2022-41

At the Reserve Bank of Australia meeting on the 6th of December 2022, the Board decided to increase the cash rate target by 25 basis points to 3.10 per cent. It also increased the interest rate on Exchange Settlement balances by 25 basis points to 3.00 per cent.

Reserve Bank of Australia increases the Cash Rate .25% from 2.35% to 2.6%

The first question most clients as is how much can I borrow?

As an Expat, the factors that affect the amount you can borrow can be different from those of an onshore borrower. The timing of purchase can significantly affect the amount you can borrow.

Today I’d like to focus on two key factors that are outside of your control but can directly affect borrowing capacity and, if timed well, can assist you with a purchase.

Interest rates - Interesting Times

Earlier in the year we wrote about the effect that interest rates has on the ability to borrow funds.

Effectively, as interest rates rise, the amount you can borrow reduces. Broadly, a 1% interest rate rise reduces your ability to borrow by 10% (of total debt), eg if you could borrow $1mil and rates rise 1%, then you can now only borrow $900,000.

I’m sure you have seen over the past few months that Central Banks globally have been increasing interest rates. As inflation rises, Reserve Banks use interest rates to try and control consumer spending and control inflation.

Interest Rate 2022 -2023 Outlook.

The 3rd May 2022 will it go down as a momentous day in the financial history of Australia. The weekend news was littered with the opinion of doom and gloom (relating to interest rate rises) and the effect of what interest rate rises will have on the economy.

What is the cost of obtaining a mortgage in Australia?

As we lead into another Federal Election, one of the significant political issues leading into the last Federal Election was the Royal Commission into the Banking, Superannuation, and Financial Services Industry, or as it became known as the Hayne Review.

Should I Fix my interest rate?

Back in Quarter 3 2021, the Reserve Bank of Australia (RBA)  announced that we could see an interest rate increase at some point in 2022, previously they had suggested no changes until 2024. Since then we still have not seen the Reserve Bank make any changes to interest rates, but we have seen banks increase their fixed rates, some three times during the last six months.

As I sat and watched the ABC news on the 19th January 2022, an interesting report came on about the reserve bank raising interest rates later in 2022.

Bear in mind that earlier in the news, the ABC had just reported on the number of deaths, hospitalisation, and new cases of Omicron, the numbers for deaths and hospitalisation were the highest Australia had seen since the pandemic.

Do banks reward existing customers for their loyalty when applying for a new home loan?