We are experiencing the lowest interest rates for years and on the average home loan of $300,000, mortgage payers have experienced an estimated $6,000 extra in the yearly household budget.
Some have chosen to forgo the reduction and get ahead by taking advantage of the opportunity to pay extra capital off the loan putting them in a strong position to face the future.
However the saving have stimulated consumer spending for some people by creating a certain perception of wealth amidst homeowners, the Reserve Bank believe.
This perception is further supported by rising house prices and a steady turnover in the property market.
Yet if overall credit were the indicator of stimulated spending, the figures are not adding up. There has been a decline in Credit Card applications as well as Personal Loans. Home Loans have remained strong however the First Home Buyer applications have declined showing that housing affordability is still a problem for younger people
With over 20 years experience in Home Loan Lending and Financial Planning, You can feel confident Cairns Mortgage Brokers will get you the best deal on the market. Call us today: 4057 9746