Widespread criticism of the Federal Government's Budget has encouraged the Reserve Bank of Australia to leave the official cash rate on hold yet again.
This decision marks the 10th consecutive month that the official cash rate has been left unchanged at 2.5%.
The decision to leave the cash rate on hold for yet another month was a natural one for the Reserve Bank given that the Federal Budget has received such extensive condemnation.
In May, the federal government's proposed Budget saw consumer sentiment fall to its lowest level since August 201. According to the latest Westpac survey on Consumer Sentiment, we're all concerned we'll start to feel the pinch, with 59.2% of Australians expecting their family finances to “worsen” over the next 12 months.
Despite the post budget backlash, there are some pretty strong indicators that the economy is still tracking nicely for June. Unemployment has held steady again this month at 5.8% and dwelling prices in Australia's capital cities have recorded a slight fall of 1.9%. First home buyers and investors may see this as an ideal time to jump onto the property ladder, particularly given there are plenty of opportunities to secure low interest rates and take advantage of unprecedented levels of home loan discounting.
According to the Reserve Bank of Australia, interest rates are likely to remain low for the foreseeable future, which could mean house prices and market competition will continue to increase over the coming months.
With this in mind, if you're in a position to buy, now might be the time to make that leap. With competition fierce between lenders, shopping around and comparing your options can have significant results and could save you thousands of dollars a year.
So, if you've got that deposit ready to go (or are on the way there) a Mortgage Choice broker can really add value - they do all the legwork for you and help secure you a great deal.
Of course, it isn't just new home buyers and investors who can benefit from the current economic situation. Low interest rates are just as beneficial to current mortgage holders! Even the smallest changes to your job or your family's circumstances can have a significant impact on your ability to repay your mortgage. Our free home loan health check is an ideal way to compare your current loan to others on the market and to make sure you're capitalising on everything the current market has to offer.