April 05, 2011
Today is an important occasion for many Australian mortgage holders and potential property borrowers. It is the beginning of the fifth month in which the country's cash rate will remain steady.
This is certainly not the case in the mortgage market, where lenders are clambering over each other to grab consumers' attention with interest rate reductions and other special offers.
The country's official interest rate will remain at 4.75% in the lead up to, during and for at least one week after an extra long weekend in April thanks to Easter and Anzac Day.
The spokesperson for Mortgage Choice, Australia's largest independently-owned mortgage broker, Kristy Sheppard said, "Potential and current mortgage holders can settle into eating their Easter eggs with extra glee, and I'd say the former group will now be more enthusiastic about using the upcoming long weekend for their property hunt."
"Today's decision by the Reserve Bank makes a nice comparison to the lead up to Christmas last year. Then, consumers were hit by a 0.25 percentage point cash rate rise followed by significant home loan interest rate rises above and beyond that by a number of lenders.
"The tune has definitely changed. Many lenders are now working hard to attract both residential and business loan customers by introducing special offers and incentives, readjusting their fixed rates downwards to compete with peers and bringing out a range of variable rate discounts.
"It is a pleasing situation to observe and one that has seen consumer enquiries about home loans spike to a level 11% above Mortgage Choice's weekly average.
"Today's market has plenty of tempting offers of both the home loan and property varieties but hesitation about the rising cost of living and a more cautious attitude to spending is holding lots of people back.
"With rental costs on the increase, rental vacancy rates sitting well under 2% nationally and interest rates looking steady for the time being, there is an increasingly loud debate in many people's minds about the benefits of being a tenant versus those of becoming a property owner."
Call Mortgage Choice on 13 MORTGAGE.
For further information or to arrange an interview, please contact:
Kristy Sheppard or Belinda Williamson
Mortgage Choice Corporate Affairs
(02) 8907 0502 / 0407 450 860 or (02) 8907 0472