As anticipated by the majority of Australia's leading economists, the Reserve Bank of Australia released their decision this morning to leave the cash rate on hold at its all-time low of 1.75% for June 2016. This decision comes ahead of July's federal election and comes following a 0.25% cut to the cash rate last month.
In releasing their decision the Reserve Bank noted that overall growth in Australia is continuing despite a large decline in business investment. They reiterated the fact that low interest rates are supporting domestic demand whilst the effects of supervisory measures have strengthened lending standards in the housing market.
To read the full statement released by the Reserve Bank this morning please click here.
Do you have a mortgage? It could be time for a home loan health check!
Australians can continue to benefit from all-time low interest rates and high levels of competition between major bank and non-bank lenders. All home owners should be aware of the current changes in the housing and finance markets and should act accordingly.
A quick and easy home loan health check will give you the opportunity to review your current financial solution and see if you could be either:
- Saving money on your monthly mortgage repayments; or,
- Accessing other features and benefits by refinancing to a more suitable solution.
To arrange your home loan health check with iconic, make an enquiry now.
What to expect next?
According to Tim Lawless, head of research at CoreLogic, mortgage rates are expected to remain at their lowest levels since 1968. Mr Lawless also mentioned that if inflation data from the June quarter shows another weak reading, the chances of a further cut to the cash rate in or around August 2016 are high.
The Perth property market seems to be improving in terms of housing affordability. Latest findings by an Australian Investment Services company found that for the twelve months to the end of March 2016, Perth residents spent just 21.5% of their monthly income on mortgage repayments, down from 22.6% previously. Nationally, Australians spend 27.6% of their monthly income on mortgage repayments – 6.1% more than the WA average. All in all, it is yay for WA when it comes to housing affordability at the moment!
If you would like to know more about today's cash rate decision and how it affects you we invite you to send us an email or contact our head offices on 1300 663 943.
Thanks for reading!
iconic home loans
** All information taken from the following websites: Reiwa, The Australia Bureau of Statistics and the Reserve Bank of Australia. Information is current as at May 2016. Finance availability is subject to applicant satisfying lenders qualifying criteria, and all approvals are at the discretion of the lender.