Following today’s Melbourne Cup Day cash rate decision that saw the Reserve Bank of Australia hold the cash rate at 3.25%, Mortgage Choice Greensborough is encouraging borrowers not to lose sight of other positive signs in the market.
“Despite the fact that there are some positive signals in the market, consumer confidence is still worryingly low and today’s decision by the Reserve Bank is unlikely to help this improve. It is understandable that the rising cost of living is having an impact on consumer sentiment but when looking at the pace of economic recovery, it is important to take in the whole race and all factors on the field, not just the finish line!” said Mortgage Choice Greensborough’s Hannah Fox.
“While consumers are struggling to gain confidence, there is encouraging economic data that shouldn’t be ignored. According to QBE’s latest Australian Housing Outlook report, Australia is experiencing high levels of housing affordability, with the proportion of household income being put towards mortgage repayments falling in all capital cities.
“In fact, apart from a period in 2009 when the RBA cut interest rates aggressively in response to the GFC, we are looking at the best levels of affordability across most capital cities since the beginning half of last decade.”
Hannah went on to say while she can understand why borrowers would have been cheering for a rate cut this race day, there are still proactive steps to take that can improve their financial position.
“While every punter can’t be a winner at the Melbourne Cup, borrowers definitely can be! A rate cut today would have been a win for borrowers but there are other ways to improve your financial outlook and to repay your mortgage sooner,” said Hannah.
“Take this opportunity to get a home loan health check by asking your mortgage broker whether savings can be made on your home loan, or even whether there is a better priced product on the market for you. Further to this, don’t forget to contribute any extra dollars to your home loan when you can, to help build equity and repay your loan sooner.
“It can be all too easy to listen to the latest news about the economy and interest rates and to feel helpless. But there are steps that we can all take to ensure we make a positive impact on our personal finances. Every saving you can make on your home loan helps, especially ahead of the fast approaching festive season!”