Anyone who has recently purchased Hawthorne real estate may find they’re in a better financial position than expected, as many borrowers are using the low cash rate environment to their advantage.
The Reserve Bank of Australia’s (RBA) latest Financial Stability Review found that mortgage customers are making the most of low rates and paying down their loans much faster.
Data showed prepayment rates have increased, as has the amount of borrowers who are currently ahead of schedule on their mortgage repayments.
The official cash rate has now been at 2.5 per cent for over a year – and it’s the first time it has ever been this low.
The RBA suggested that household stress has fallen, which has given homeowners the incentive they need to pay off their home loans quicker than usual.
In fact, the real net worth in an average Australian household increased around 4 per cent over the past year, while the household saving ratio is relatively high.
If you’re yet to make the most of the low cash rate environment and get onto the property ladder, make sure you give the team at Ray White Bulimba a call.
They are experienced in the local market and can assist you in finding a property that meets your needs and budget.