Mortgage interest forecast August 2016

How does the interest rate develop in August? Read our mortgage interest forecast for this month. In it more about the falling mortgage interest rate as a result of the Brexit.

Lenders adjust mortgage rates

Lenders adjust mortgage rates

The uncertainty after the Brexit vote has caused a further fall in market interest rates. Investors opt for ‘safe’ investments, including in government bonds. The interest on the capital market (for example, 10-year Dutch government interest) has fallen to a historically low point.

The capital market interest rate is an important indicator of the (in particular the long) mortgage interest rate. As expected, most lenders have adjusted their rates downwards over the past month. Compare the current mortgage interest.

What will the central bank do?

What will the central bank do?

Since the vote for Brexit, the European Central Bank (ECB) has also been considered. Will the central bank take additional measures to compensate for the uncertainty in the market? The answer so far is ‘no’. On July 21, 2016, the ECB decided to keep the policy rate unchanged and not to expand the current buy-back program. They see current policy as ‘effective enough’.

Only when the prospects deteriorate does the central bank take action. This can be soon. The Brexit is now not only affecting British banks, but also on mainland Europe, confidence is falling and uncertainty is even shaking banks. According to analysts, the ECB is already introducing additional measures in September. Then the policy council meets again to meet.

Interest rate mortgage expected in August

Interest rate mortgage expected in August

Until then, we expect the mortgage interest rate to remain at the current low level. However, a slight fall in long-term interest rates cannot be excluded. A number of lenders still have to adjust the rates to the recent fall in market interest rates. The financial market can also already anticipate additional stimulus measures from the ECB.

 

Sharpest interest rate drop over

Sharpest interest rate drop over

For the long term, the question “can interest rates fall much further” is more relevant than “when will interest rates rise”.

It was recently announced that the ECB may be in trouble with the buy-back program because of the government loans that qualify for this run out. This is a new dent in investor confidence in the central bank.

On the one hand, the ECB’s options for further reducing interest rates are becoming scarce. On the other hand, investor confidence in economic growth (a condition for an interest rate rise) is low. With this, the sharpest fall in interest rates seems to be over and we are approaching the bottom of the low mortgage interest rate.

We will further discuss the long-term interest rate development in our mortgage interest rate forecast for 2016.

Make money with the invoice

How about getting back part of the taxes you pay for the products you consume? Since 2007, the Government of the State of São Paulo has the Good Finance program that benefits those who are registered in the system with a cash refund in the form of IPVA discount.

The program, which still aims to raise São Paulo’s revenue and combat tax evasion, prompting consumers to always demand the purchase note, has also been adopted by other Brazilian states, such as Rio de Janeiro and Rio Grande do Sul.

How it works?

How it works?

The percentage of the Merchandise and Services Circulation Tax (ICMS), collected by commerce, is returned to the consumer who is duly registered in the program and informs the CPF or CNPJ number when making a purchase.

In the beginning only bars, restaurants, bakeries and snack bars joined the program that now encompasses the segments of health, construction material, clothing and footwear, fuel, sports, leisure, home and office products, among others.

Those who do not participate must register on the website of the Treasury Department to register and to receive the cash value or as a discount on the IPVA. Only with such action will the consumer be able to receive the money back, which should be deposited directly into his checking account. In case you have not yet registered on the website, the deadline to redeem the credits is five years.

This means that if you request the Good Finance, informing your CPF on purchases, but you do not have the registration yet, you guarantee that the credits will be accumulated, but the redemption will only be possible with the subscription.

The release of the accumulated amount happens twice a year, in the months of April and October. In order to know if the banknote registration has been properly computed, you should save the tax coupons on the site, in the area “consult notes / coupons” that informs the name of the establishment and the amount of the purchase.

Advantages of using the Good Finance

Advantages of using the Nota Fiscal Paulista

In addition to receiving part of the tax paid on the purchase of various products, Good Finance has monthly draws. To participate, the consumer should be aware when registering, when the message “Accepts the terms of the Lottery Regulation of the Paulista Invoice?” Appears.

Once you have accumulated $ 100.00 in registered notes, the consumer will already be participating. To know if it was contemplated, it is necessary to enter into your account in the lottery site of Good Finance. The main prize can reach R $ 200 thousand in commemorative dates, but there are others of smaller value ranging from R $ 10.00 to R $ 50 thousand.

Are there disadvantages?

Are there disadvantages?

Shortly after the program began, many people began to say that Fiscal Note Paulista is another way for the State to have access to consumer income, but over time, the initiative proved safe.

The fact is that today, with the popularization of the Good Finance, consumers are being less benefited in credits than in the beginning of the program, since the percentage of up to 30% of the value paid by the establishments is being divided by a greater number of people. It is important to clarify, however, that the consumer will not stop receiving their credits, even if everyone decides to ask for the invoice. It is also interesting to keep an eye on the products that guarantee a greater number of bonuses like clothes, shoes, bars and restaurants.

Requesting the Good Finance is a way to be reimbursed by a very large amount of taxes paid each new purchase. Therefore, after all the above information if you think it is advantageous, make your registration on the website, inform the CPF and keep an eye on the sweepstakes.