It’s game on in Real Estate Australia
Sheyne Walsh a real estate broker has a tactics on how to get a client. Usually he sits down with them and told them the likely home-loan rate in a couple of years, not the rate today and he always have this ability to convince a client.
Head of lending at Centric Lending Services says he is persuaded interest rates will rise by a couple of profit points or more over the next two years.
“Banks are still offering discounts of up to 0.7 per cent on bigger loans and packages [home loan plus transaction account and credit card. Borrowers can get their money at a little over 5 per cent today. “Walsh says.
The home-loan market is in a state of flux with house prices on the rise, increase of interest rates, the first-home buyer grant winding down and the economy getting stronger but still fragile.
“The probability of monetary policy tightening before the end of the year is rising. At this stage, we believe the RBA will need to see further evidence on how the household sector performs to make this decision. Should retail sales and employment data continue to hold firm in the coming months, then there is a serious probability that rate hikes could commence from November.” Tony Morriss said, a senior rates strategist at ANZ.
