Borrowers shouldn’t ignore positive signs in market, says independently-operated broker
Following today’s Melbourne Cup Day cash rate decision that saw the Reserve Bank of Australia hold the cash rate at 3.25%, Australia’s leading independently-operated mortgage broker, Mortgage Choice, 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 Local Mortgage Choice mortgage broker Melissa Jackson.
“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.”
Melissa 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 Melissa.
“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!”
Visit Melissa Jackson’s website at www.mortgagechoice.com.au/melissa.jackson or call 0405 315 227.
For further information or to arrange an interview please contact:
0405 315 227
About Mortgage Choice
Australia’s largest independently-operated mortgage broker, 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 almost one in every 20 home loans 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 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.
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: 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2012 Australian Broking Awards Best Training and Education; 2012 Australian Broking Awards Best Ethical/Social Responsibility Program; 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, issued by ASIC. Visit www.mortgagechoice.com.au or call customer service on 13 MORTGAGE.