Last Tuesday the RBA announced it was holding the cash rate at the historically low level of 2.25%. The decision was made on the back of growth in the property market and a rebound in consumer confidence, which spiked by 8% after last month’s decision.
By leaving rates on hold, the RBA is taking a wait and see approach, in order to evaluate the full effects of last month’s cut, which has seen many home loan rates reach 60-year lows.
That’s not to say, however, that the RBA isn’t planning further cuts, as it has indicated another drop will be made if necessary. If that happens, it is expected that home loan rates will fall, causing greater demand and a spike in property values. This is great news for those who are looking to enter the market now, whether as a first home buyer or an investor, as borrowing is extremely affordable at the moment.
For those with an existing loan, I have three top tips on how you can take advantage of low rates.
Watch this space for more updates on how to make the most of the cash rate.