In an unprecedented move the US Federal Reserve has set key interest rates as low as zero to 0.25%. These exceptionally low rates are expected to stick around for some time according to the Federal Reserve.
Rate Detective Co-Founder, David Kaplan, believes that it's possible the Reserve Bank of Australia (RBA) may set Australian rates almost as low eventually.
"Rates could go that low - but it is all crystal ball gazing until the RBA acts. We don't feel they will go as low as in the US, but it's likely there will be some large rate cuts ahead to further stimulate domestic spending - that could be a huge break for families with mortgages. Depending on how well these stimulating tactics work and considering other economic factors, there certainly is the potential for the Australian cash rate to dive as low as in the US but it's unlikely at this stage."
"What is certain is that banks will get tougher on lending policies, as ANZ has already done".
Rate Detective believes that considering the current economic climate and the expected rise in the unemployment rate there is no more pertinent time to seek savings on your home loans, personal loans, credit cards, electricity, etc.
David says that the potential savings arising from mortgage restructuring should not be underestimated.
"People must asses their own financial situation and make a call on how they want their mortgage structured. A good structure will save them $1000's."