Peter Overton, Nine News Sydney: The Reserve Bank is universally forecast to cut interest rates tomorrow – If it happens, it will be the first time rates have been moved in almost three years.
But smart mortgage shoppers already know they don’t need the RBA to get a good deal on their home loan.
Ross Greenwood: David Stableford, by his own admission, is obsessed with trying to get the cheapest mortgage rate
David Stableford, home owner: People take the mick out of me cause I go after another 0.1 cause I think why would I give my money to a complete stranger
Greenwood: And that obsession – not giving extra money to banks – saves the family around $100 a month
It means Alex, Amber and Eve, can enjoy things they might otherwise do without.
Alex Stableford, home owner: You can get the luxuries, you know a night out now and then… those types of things which we wouldn’t be able afford if we didn’t shop around
Greenwood: And there is a lesson from the Stableford’s
James Algar, Mortgage Choice: No I don’t think customers push the banks hard enough, and I think the banks know that
Greenwood: Even before tomorrow’s expected 0.25 percent rate cut, RateCity says the cheapest variable mortgage could save astute home buyers hundreds of dollars a month
Sally Tindall, RateCity: Right now, the cheapest variable home loan rate on our database is 3.29 percent.
That’s incredibly low.
Greenwood: On top of that, if the RBA does cut rates and banks do pass it on, in full, a person with a typical $500,000 mortgage, will save an extra $73 a month, that’s an extra $875 a year after tax.
But if the RBA cuts, remember, it’s a response to persistently low inflation and house prices.
Cameron Kusher, Corelogic: What it will mean is people that are struggling to repay that mortgage will be able to get in touch with their lender and say can you reduce my mortgage repayment.
Greenwood: Today, Corelogic’s said in may national home prices fell 0.4 percent – the smallest monthly fall in over a year.
In Sydney, house prices are down 15 percent from their peak with the median price near $869,000.
Some areas have fallen close to 20 percent.
Kusher: We are expecting further falls over the coming months, but don’t be surprised if that rate of decline does slow up and by the end of the year we are looking at the bottom of the market
Greenwood: The timing, for that bottom of the market, depends on the Reserve Bank cuts and on aggressive borrowers looking for a better deal.
Stableford: I’ve got no loyalty to any lender, I mean…come on, you likes any financial insittueion
Greenwood: Ross Greenwood, Nine News
ANZ boss firm on finding a way to keep mortgage brokers– interviewed –Shayne Elliot, CEO, ANZCould cutting interest rates hurt your household savings?– interviewed –Tim Wilson, Former Chair, House Economics Committee