A number of economic factors would have underpinned the RBA’s decision such as: the inflation rate; the nation’s unemployment rate; dwelling prices; wage price growth; consumer sentiment; business conditions and more.
Even though the RBA board members have made the decision to hold the cash rate once again, there is talk of two rate cuts this year and while this might sound like good news, borrowers and future home buyers alike should realise that the RBA’s cash rate may not have as much influence as it once did, over the interest rate lenders charge on your home loan.
The important thing for you to remember is that there are good deals to be had out there, as lenders offer competitive deals to attract new customers.
RBA Governor Lowe recently said that the discounts on headline interest rates, the rates you see advertised by lenders are often quite different to the discount you might be able to secure.
At Mortgage Choice, we know that interest rates are constantly changing, and it can feel like a full time job to stay on top of all the changes. Luckily, you don’t have to. Your local mortgage broker knows the lending policies and preferences of a wide range of lenders and may be able to negotiate a competitive interest rate for you.
More and more borrowers are turning to their local home loan experts who can offer them choice and save them money and time. In the September 2018 quarter, a record 59.1% of loans were arranged by mortgage brokers.
So, whether the cash rate changes or not, the reality is we are living in times of unprecedented change, which is why you should keep a home loan expert in your corner, who is prepared to fight to get you a competitive deal on your mortgage.
Whether you are looking to switch from an interest-only loan to principal and interest, or coming to the end of a fixed-rate period, now is the right time to speak to your mortgage broker.
If you are looking to buy your first home, call your local Mortgage Choice broker today to find out what your borrowing power is and get help making sense of this complicated lending environment.