Are you thinking of getting into the property market in 2020? Read Managing Director, Don Crellin’s top 3 finance insights and predictions for the year ahead.
1. Interest rates changes
In 2020 we expect to see further drops in interest rates, possibly two more cuts of 0.25% each, taking the official cash rate to 0.25%. You should expect to see a ‘3’ in front of most mortgage rates (but interest rates across products do vary).
Of course, there are always factors that are difficult to predict that may influence further rate movements – property price, and overseas trade challenges to name a few. Rates could be low for an extended period of time though, which should give first home buyers a level of confidence when taking on their first major commitment.
2. More government assistance
With the Government’s First Home Loan Deposit Scheme commencing in January 2020, 10,000 first home buyers will be able to borrow up to 95% of a property’s value without paying the traditional Lenders Mortgage Insurance. This means they can get into the market with less and it’ll save them thousands on costs. While this is a great scheme, we expect it’ll be over-subscribed and will actually cater for less than 10% of those who apply, so home buyers will need to register interest early.
3. VIC and WA property markets
The WA property market looks set to improve with CoreLogic reporting the first increase in prices in Perth for some time. This trend is expected to continue into 2020 with population growth improving slowly, and properties on the market decreasing. In Victoria, the trend of rising house prices in Melbourne is also expected to continue into 2020.
To find out what your finance future could look like, get in touch with Resolve Finance mortgage broker today.