Article by Sarah Thompson from Loan Market
With interest rates remaining low, in the light of yet another announcement of ‘hold’ from the Reserve Bank, now remains a great time to take advantage of low interest rates. Low interest rates typically signal an opportune time to buy property, but you can capitalise on them even if you’re not in the market for a home.
If you’re looking to sell your home, now is an excellent time to do those renovations you may not have been able to justify before now. Financing your renovation with lower rates might net you more funds and result in increasing the value of your sale. By having decent funds to spend on your renovations, you can complete them sooner and get your property to market much quicker.
Buying a car might also be on the cards with lower interest rates. It’s a good idea to establish what your needs are and how much you want to spend, then decide if you’ll purchase a brand new or second-hand model. Your loan requirements will change slightly depending on what you choose, and a mortgage broker can advise what the differences are.
If you have a business and are considering an expansion, a business loan can help you purchase the right equipment, promote your services or invest in staff.
Fixed rate mortgages won’t necessarily be impacted by lower rates. If you have a variable home loan, it’s a good time to increase your repayments, as you’ll save on interest and chip away at your loan balance.
Information in the article is of general nature and should not be used as advice. Ray White Drysdale strongly recommends our clients speak with a licenced Financial Adviser or Accountant for individual advice.