Anyone interested in taking out a home loan, regardless of whether it's a first home buyer loan or for property investment, may be happy to hear that the Reserve Bank of Australia (RBA) cut the official cash rate earlier this week (August 6), which could be fantastic news for those looking to enter the real estate market.
The cash rate was reduced to a low 2.75 per cent back in May, before being slashed by another 0.25 basis points at the beginning of the week – lowering the cash rate to a historically low 2.5 per cent.
According to an August 6 statement released by Glenn Stevens, governor of the RBA, borrowing nationwide has decreased, but there have been signs of an increased demand for housing finance.
Peter Bushby, president of the Real Estate Institute of Australia, said that housing affordability could increase by 4.7 per cent, while the while the average loan repayment amount required from median family incomes has decreased from 29.9 per cent down to 28.5 per cent.
"This is the best level of housing affordability since the December quarter 2009 and will be welcomed by investors who have been returning to the market in greater numbers over past months," said Mr Bushby in an August 6 statement.
"The average loan repayment would be $463 per week and that is $149 per month less compared to the figure recorded a year ago."
This could signal a fantastic opportunity for anyone looking to secure a great deal on a home loan. Now could be the perfect time to get in contact with a home finance professional at Smartline and begin the search for a suitable loan 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.