RBA board leaves the rate where it is.
It comes as no surprise that the cash rate was left at its current record low of 1.5%, despite some positive economic indicators. Governor Philip Lowe had this to say in his official statement:
Nationwide measures of housing prices are little changed over the past six months. Conditions in the Sydney and Melbourne housing markets have eased, with prices declining in both markets. Housing credit growth has declined, with investor demand having slowed noticeably. Lending standards are tighter than they were a few years ago, with APRA’s supervisory measures helping to contain the build-up of risk in household balance sheets. Some further tightening of lending standards by banks is possible, although the average mortgage interest rate on outstanding loans has been declining for some time.
So, will this decision affect your situation? Despite the cash rate remaining on hold, it’s important to remain vigilant as there are other influences on home loan rates. Make sure to keep an eye on any rate movement from your lender, and consider whether your current loan is still right for you.
If you’d like to review your current home loan or investment mortgages to ensure you are properly structured – the experienced team at Investmark and Lendmark Home Finance are happy to assist.