Mortgage Rates from 1964
This is based on Reserve Bank data and shows that interest rates have never been lower since records began in 1964. This is only to February. The latest drop is not factored in. You can in fact get many mortgages for under 5% now.
And what does this mean for a family with a mortgage. Median house price is $460,000. Say you borrow 80% or $370,000.
A 20 year term mortgage would see the following weekly payments:
- 10% – $823
- 9% – $767
- 8% – $713
- 7% – $661
- 6% – $611
- 5% – $563
So the difference between 5% and 10% for a family with a median mortgage is $260 a week. Massive.