Rate Cut in February 2016

That's what the market says.

According to market pricing, there's a 100% chance of a rate cut in February 2016.

http://www.asx.com.au/data/trt/ib_expectation_curve_graph.pdf

But potentially only owner occupants will benefit.

 

Ive got a feeling a rate cut might coincide with a higher percent been put on IP loans and OO will benefit from the rate cut. Hoping not but we all know how blood thirsty banks can be :/

 

The more likely scenario would be for a rate cut to be passed on to P&I and not passed on to I/O

 

I agree with this. Trying to have a level playing field for first home owners and people wanting to buy their PPOR. I think for now, the good times for investors are being squeezed due to the APRA recommendations and the banks across the board increasing investment loans/ interest rates.

 

But somehow the house price is already expensive now ?
I guess this is due to the fact that China has just recently cut their interest rate.

 

Says who? I don't buy this crock. Sure, I can't afford Point Piper either.

 

Maybe reserve bank might drop the rates but how the banks will react to this is a different story.
I think Banks / Lenders are going to be under pressure next year from their share holders.
So I think rates will be steady for quiet some time.

Banks / lenders might offer other incentives such as cash rebates, Higher LVR's without incurring LMI but this will only be for owner occupier loans.

 

Swap rates have gone down close to May levels. And some lenders have cut fixed rates as a result (outside the OO & IP rate differentiation discounting phase we have seen).