Consumer News

Interest rates at all-time low

12 August 2016

By Tim McKibbin – REINSW CEO

The Reserve Bank of Australia has cut interest rates to a record low of 1.50%, which means the cost of servicing debt is better than it has ever been.

This news will delight some consumers who will see it as the perfect time to take advantage of the circumstances and borrow money to buy and invest in property.

However when considering buying a property, it is wise to build in a comfort factor because you’re committing yourself to a mortgage for a long time. In some cases this can be for 30 years or more.

Undoubtedly over that time there is going to be interest rate changes and other events in your life which potentially could put pressure on your ability to service the debt.