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What to know about current mortgage rates in Gold Coast

By Andrew Bell

Buying a house in Gold Coast is on a lot of people's bucket lists. It's a coastal city that offers incredible surfing and puts you in the heart of innovation and opportunity in Queensland. Whether you've lived in the area for a while and want to upgrade your living situation, or spent time elsewhere and want to buy real estate, Gold Coast is an excellent place to buy.

But, what are the mortgage trends in the area, and is now the best time? Let's dive in.

The latest mortgage trends in Australia

In September 2022, Philip Lowe, governor of the Reserve Bank of Australia, offered predictions on the future of cash rates. Lowe predicts that rates will continue to spike, and this has signalled banks to follow suit for mortgage rates to stay afloat. While not all smaller banks have done the same, the top institutions have made decisions.

For homeowners who have not already established a fixed rate for their homes, this change may affect their home rates. Considering the latest predictions and the influence of inflation, rates will likely peak at 3.35%, and inflation will surge through the end of 2022 up to 7%.

This may be a shock to those who have been coasting on pandemic rates. While the country was in a state of emergency in 2020 and rates were low (0.10%), restrictions have since been reduced or eliminated, and rates will continue to rise as a result.

When the cash rates rise, banks typically raise their rates to match them. While Lowe is confident that rates will decline over time and get back to 2% or 3%, this will take time and effort as the country rights itself post-pandemic.

If you have a variable home rate, these cash rates will affect how much you pay. You may be thinking about locking in a fixed rate right now, but variable rates are typically lower. If the cash rate peaks at 3.35%, it's likely that the variable rates will reach 6.12% across the country.

Is now the best time to buy?

While rates are predicted to rise soon, they are still relatively low for the area. If you have decent credit and budgeting, now may be the perfect time to lock in a home loan and wait out the storm of inflation.

Whether you decide to work with a lender on a fixed or variable rate, Ray White Surfers Paradise's real estate agents can help you find the home of your dream on Gold Coast. We know the area, and can work on your behalf to find the right price within your budget.

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