Free fallin'...
Funding costs and interest rates are falling significantly, as noted here more than a few times in the past few weeks.
And I'd hazard it's quite likely to be a good time to call your mortgage broker, since many lenders have been jealously guarding their profits by sneaking variable rates higher over recent times.
My broker recently fixed a number of loans for me at ~70 basis points lower than I was previously paying, which is a staggering dollar saving when you project it out over three years.
I don't know anything about your personal situation, obviously, but borrowers may also find that mortgage rates and credit assessment requirements for the extension of interest-only mortgages have been tweaked in a slightly more favourable manner.
I discuss a few key points in the 2-minute video below:
There would remain at least a threefold challenge for the transmission of monetary policy.
Namely that business hurdle rates for investment decisions would likely remain little changed, that banks mightn't pass on rate cuts in full to borrowers, and that new mortgages might still be stress-tested at 7¼ per cent (the equivalent of up to fifteen or more rate hikes, which is frankly a bit illogical).
