The recent decision by the Reserve Bank of Australia (RBA) to keep the cash rate unchanged could be a fantastic opportunity for potential homeowners looking to secure a great home loan deal for their purchase.
In a statement released yesterday (July 2), the RBA kept the Australian cash rate at 2.75 per cent, after decreasing it in May.
Glenn Stevens, governor of the RBA, said the decrease has "supported interest-sensitive spending and asset values", with further effects expected to occur in the coming months.
"The pace of borrowing has remained relatively subdued, though recently there are signs of increased demand for finance by households," Mr Stevens said.
This sentiment is echoed by Peter Bushby, president of the Real Estate Institute of Australia, who said in a statement released July 2 that the market has reacted positively since the cut.
The standard variable rate has dropped 0.3 percentage points since the cut, and has now settled on 5.9 per cent.
"Auction results are improving in strength, while increases in housing finance commitments and building activity are also positive," Mr Bushby said.
Mr Bushby also noted that the decline of mortgage rates has stimulated the demand for home loans by investors and non-first home buyers, indicating a resurging confidence in the property market.
If you're in the market for a home loan, regardless of whether it is an investment home loan or not, now could be the perfect time to take advantage of the lower interest rates.
The best way to prepare yourself is to get in contact with a mortgage broker. Speak with the financial experts at Smartline in order to discuss your options and find the right home loan solution for your situation.
You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.