December 05, 2017
In its last Board meeting for the year, the Reserve Bank of Australia (RBA) played nice and left the cash rate on hold at the historically low setting of 1.5%.
This not only marks the 16th consecutive month that rates have been left on hold, but it means the RBA made no changes to the cash rate throughout 2017. So, what does stability in the cash rate mean for you and what should you expect from 2018?
Two great questions.
First, the fact that the Reserve Bank has left the cash rate on hold for this long should be perceived as ‘good news’. The low cash rate has helped keep the cost of borrowing at very affordable levels.
Most economists are predicting at least one rate hike in 2018. When that may happen is truly up to the powers that be over at the RBA. But while we don’t know when the cash rate may rise, we do expect mortgage rates on the whole to stay lower for longer.
With summer holidays right around the corner, now is a good time to review your finances and chat with me to see if I can secure you a better rate or product for your needs.
If you’ve owned your home for a few years, there’s good chance you’ve built up some reasonable equity and this can be a valuable resource when it comes to renovating or even buying an investment property. We can help you find out how much equity you have in your home and the best way to access it.
Wishing you a happy holiday from all of us here at Mortgage Choice.