One of the impacts of Covid-19 has been the plunge in mortgage interest rates, a result of the Reserve Bank moving to ease pressure on households, boost spending, and keep the property market afloat.
In August, one-year fixed-term home loan rates dropped under 2.5 per cent for the first time, and that’s where they’re mostly sitting now. That’s great for someone borrowing money for a mortgage.
But wait, there’s more. Economists are predicting the OCR could go into negative territory next April, perhaps as low as -0.5 per cent.
What does that mean for borrowers?