Saturday, June 9, 2012

How Will Interest Rates Effect The Port Stephens Property Market

The Real Hero; ANZ

Banks Pass On Interest Rates But What Does That Mean?

How Will The Banks Passing On The Interest Rate Drop Effect Port Stephens Property?

A lot of people have been asking me what passing on the Reserve Banks Drop in the cash rate by banks will mean to the Port Stephens property market.

Before answering that question lets look at the big four banks and how much of the drop they passed on:

  • ANZ – the big hero passed on the full 0.25%
  • Commonwealth Bank – 0.21% drop
  • NAB – 0.21 % drop
  • Westpac – 0.2% drop

A 0.25% fall in Interest rates equates to a $50 loss in monthly payments on a $300,000 loan at 7% over 30 years.

This should inject much needed confidence into the Port Stephens Real Estate market.

The drop in cash rate is estimated to see approximately 36% more refinance.

If you are interested in finding the best mortgage broker to negotiate the most value for your home loan, please don’t hesitate to contact me.

The big question, though is what these Interest Rate reductions will do to the Port Stephens Property market.

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