Happy Holidays - That Time of Year Again

It would appear that 2016 has been a great year for homebuyers and re-financers taking advantage of all-time record low interest rates and locking in very competitive rates from anywhere between 2-5 years.

The year started quietly with an official cash rate of just 2.00% but then moved downwards to 1.75% in May - a decision that took many by surprise. The reasoning behind this, according to the Grand Poobah at the Reserve Bank, was to stimulate the economy and get people spending. Yet instead, it seemed to fuel property values in many areas to levels not anticipated for at least another 5-10 years.

In August, the Reserve Bank did it again and reduced the cash rate by another 25 points to just 1.50%

Smart Borrowers Savvy borrowers took advantage of these rates and fixed their loans (or part thereof) for between 2-5 years, knowing that regardless of whether rates go up or, dare we say, down again (highly unlikely), they’ll be able to accommodate the next few movements either way over the next few years. Should rates start to move upward (as per what many pundits expect over 2017), these ‘fixed rate borrowers’ will be in an even more comfortable position, having locked in an attractive rate for the few years ahead. And by the way, it’s not too late for other borrowers to follow suit if that suits their property strategy – interest rates, for the time being, are still at fabulously low levels and prime for locking in!

Our Year in Review For us at VFS, we have been incredibly fortunate throughout 2016 to help many people from all over Australia (and a number abroad) secure their place in the Australian property market. We’ve helped families upgrade to larger homes, assisted first home buyers in getting into the market, numerous investors streamline and improve their property financing portfolio, and even helped retirees arrange their reverse mortgage so that they may enjoy their twilight years with peace of mind.

Again, another great year! It’s been consistently busy, and we have enjoyed every moment!

The most commonly asked question throughout 2016 was ………

When will interest rates drop again?

The standard answer was

In our opinion, we doubt they will – we’re expecting a rate rise very soon

We would like to take this opportunity to thank all of our borrowers, investors and partners throughout 2016 for choosing us and for your continued support. We wish everybody a warm and prosperous festive season filled with love, laughter and fun times. May 2017 bring you all good health and all the good things you wish for.

And as 2017 approaches, please don’t hesitate to call on 0438 041 111 to arrange a confidential discussion to get things started after your summer holiday break!

As always, enjoy life, work hard, play safe and remember that we are always here to help you

'Take The Confusion Out Of Lending'

Peter Vinci - 0438 041 111