What does the Reserve Bank of Australia's interest rate decision mean for you this month?
The RBA has again left the cash rate unchanged at 2.5%. This is the 14th consectutive month of steadiness, and it appears it's likely to stay that way.
- To read Mortgage Choice's take on this non-event, click here.
- For the RBA's official media release and all the econimical nitty gritty, click here.
For first home buyers and any one else, read on!
What does the RBA interest rate decision mean for you:
- If you are a first time home buyer, it means get in now, but be prepared for rises in the future.
- For home owners, rates on hold now means steady-as-she-goes.
Keep in mind that interest rates are cyclical. They wont be this low forever.
Borrowers should consider taking advantage of the competitive home loan deals on offer.
Now is a good time to review your overall debt position, get advice from a Mortgage Choice Broker on what products are available to you, how much you can borrow, and use a budget to determine exactly how much you can afford now, and in preparation for when interest rates do rise.
Consider hedging your interest rate position a little by locking in some fixed rate.
Interest rate hikes are certainly on the horizon. It is expected that rates look set to start rising soon so borrowers need to start preparing now. Get in while you can, is the key idea.
For example, variable rate borrowers with a $300,000 mortgage will need to factor in an extra $300 per month to keep up with repayments should their interest rate increase by 150 basis points.
For more information check out our blogs on:
- How much can I borrow
- I know how much I can borrow, but how much can I afford to repay?
- Can I get the First Home Owners Grant
For further information on this or any other topic, please contact your mobile mortgage choice broker, Daniel Meade on:
Phone 07 3833 9666,
Or simply click on the contact us tab on this page.
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Daniel is looking forward to helping you determine how the RBA interest rate decision effects you today. Thanks for reading our blog.
This article is for general information purposes only. It has been prepared without considering your objectives, financial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances