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Interest rates are at record lows, but they won’t stay this low forever. Don't wait until it's too late to lock in a great home loan deal.
For the 11th consecutive month, the Reserve Bank of Australia has decided to leave the official cash rate on hold. While interest rates remain at record lows, the mortgage market is a very complex and confusing space. If you would like help navigating the market, give your local broker a call today.
For the 11th consecutive month, the Reserve Bank of Australia has decided to leave the official cash rate on hold at 1.5%.
According to the majority of economists, today’s decision was “largely unsurprising”.
Indeed, each cash rate decision by the Reserve Bank of Australia is a delicate balancing act. The Board have to look at all of the economic data – both locally and globally – and then make their cash rate decision based off the back of that data. And, over the past month, the economic data would suggest that the Australian economy is tracking along quite nicely.
Property values bounced slightly higher in June, while the unemployment rate fell even further. In addition, business growth remains anaemic, while consumer sentiment remains relatively sluggish.
According to the latest Westpac Melbourne Institute Index of Consumer Sentiment, confidence slid 1.8% throughout June.
Increased pressures on family finances combined with renewed concerns about the economic outlook ultimately drove the latest drop in consumer sentiment.
But while confidence has deteriorated, property values are, once again, on the rise.
The latest data from CoreLogic found property values across the combined capital cities rose 1.8% throughout the month of June, taking the median dwelling value to $635,000.
And the good news didn’t just begin and stop with the property market, with data from the Australian Bureau of Statistics showing that the unemployment rate actually fell from 5.7% in April to 5.5% in May.
When you look at all of these data points together, it is fair to assume that the Australian economy continues to perform relatively well, providing the Reserve Bank with all the incentive it needed in order to leave the cash rate on hold once more.
But while the cash rate remains untouched at 1.5%, Australia’s lenders continue to tweak their pricing and policy.
In the last week alone, we have seen a number of the major lenders increase their interest only pricing.
Anyone in an interest only loan should take the time to look at their situation and make sure they are still in the right product for their needs.
Your broker will find out as much as possible about your circumstances and goals.
Your broker will calculate how much you can borrow and how much you can comfortably afford to repay.
Your broker can compare hundreds of home loans from over 20 lenders, including the big four banks, to quickly narrow down your choices to the ones that best suit you.
Our brokers have a wealth of knowledge that they're only too happy to share.
If you decide to go ahead with an application, your broker will prepare all of the paperwork and support you through the entire process.
Your broker could help you get pre-approval for your home loan so you can buy with confidence.