Home loan market in Australia 2013

Due to the poor economic times in the world economy at the moment, and short term forecasts not showing any major turn around, now is a great time to look at borrowing money for your home purchase. Australia has managed to keep it economy moving forward during these last few years, though there has been much done to assist this. Government handouts and bonuses have helped a long way to doing this. But also the Reserve bank has helped keep the economy moving by shifting the official cash rate to stimulate the economy. This has made home loans very cheap at the moment.Although there has been some uncertainty in the Australian economy, housing has still done fairly well. Many high end properties have lost large amounts of money, but most people looking to enter the home market are not looking to buy such expensive properties anyway. When you look at the lower to middle priced properties, the prices have not varied by any where near as much. And many areas have had price increases over the last few years as well. Price fluctuations will always happen in any market. But if you are buying a house to live in, chances are you plan to live there long term. So if you look at 10+ year prices, generally they always go up. Price fluctuations are more of an issue to those investing in property for the short term.A Home Loan generally come in 2 forms, either Variable interest rates or Fixed Interest rates. Both have their advantages. Currently you can get some very good deals from banks on fixed rate home loans. Banks are able to borrow cheaply for fixed periods at the moment and want to get you committed to them for the short term to protect their cash flows. Knowing that customers do not want to pay the penalties for exiting a fix term loan, they know that you won’t refinance within the period of the loan. Three year fix terms are very competitive currently.Using a home loan broker to find all the best home loans can make life easier for you and maybe save you some money as well.