Strength of economy causes RBA to leave cash rate untouched
The recent raft of positive economic data has encouraged the Reserve Bank of Australia to leave the official cash rate on hold at 2.5% this month, according to Mortgage Choice.
Local Mortgage Choice mortgage broker Melissa Jackson said rising consumer sentiment teamed with improving business confidence and climbing dwelling values showed there was no urgent need for a rate cut in October.
“Consumer sentiment and business confidence have both seen a dramatic improvement over the last month, hitting levels not seen in recent times. According to the Westpac-Melbourne Institute Index of Consumer Sentiment, confidence rose 4.7% in September – to sit 13.8 per cent higher than when the Reserve Bank first cut the official cash rate in November 2011,” Melissa said.
“Similarly, the NAB Monthly Business Survey found business confidence strengthened considerably in August, rising to its highest level since May 2011.
“In addition, capital city dwelling values recorded a modest 0.5% increase in August, taking the cumulative recovery in residential values to 7.0% since the market bottomed out in May last year.”
Melissa said with property prices on the rise and interest rates sitting at historically low levels, it may be the right time to get onto the property ladder or review your current home loan.
“The combination of historically low rates and competitive offerings from Australia’s lenders is extremely appealing for anyone considering purchasing property in the near future. By looking at your purchasing options now, you may be able to get ahead of the rising property prices.
“On the flipside, for those that already have a mortgage, low interest rates provide mortgage holders with the perfect opportunity to repay their home loan faster and achieve their next financial goal sooner.”
If you want to learn more about your home loan options, call Melissa and the team at Mortgage Choice in Suburb on phone number, visit address or log onto www.mortgagechoice.com.au/melissa.jackson.
For further information or to arrange an interview, please contact:
0405 315 227
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 information, consider its appropriateness to your circumstances.
About Mortgage Choice
Mortgage Choice has sourced a home loan for well over 350,000 people since 1992. It works with all manner of property finance borrowers via hundreds of franchises.
The company writes one home loan every 15 minutes in Australia by providing professional guidance on, and choice of, products offered by an extensive panel of leading lenders. Many of its brokers provide a broader service, helping customers source commercial and personal loans, asset finance, deposit bonds and providing referrals for risk and general insurances.
Uniquely, Mortgage Choice pays its franchisees the same commission rate for home loans they write, regardless of rate paid by the lender a new customer selects, working in the customer’s best interests to tailor a solution to them.
To cater to the growing needs of our customers, Mortgage Choice soft-launched in October 2012 its new financial planning business. Mortgage Choice Financial Planning will officially launch in FY14.
The company has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).
Recent recognition: 2013, 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2013, 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; 2012 Australian Broking Awards Best Training and Education; No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacific Best Under A Billion list.
Mortgage Choice holds an Australian Credit Licence: no. 382869 and Mortgage Choice Financial Planning Pty Limited, a fully owned subsidiary of Mortgage Choice, holds an Australian Financial Services Licence: no. 422854. Both licences are issued by ASIC.
Visit www.mortgagechoice.com.au or call customer service on 13 77 62.