The official cash rate has remained unchanged, after being reduced to a historically low 2.5 per cent in August, the Reserve Bank of Australia announced yesterday (September 3).
This could be fantastic news for anyone investigating investment home loans or first home loan options, with the lower cash rate having the potential to influence the interest rates associated with the home loan market.
For example, the Real Estate Institute of Australia's president, Peter Bushby, stated that the lowering costs of borrowing has been one of the major influences for improving the housing market in the past two years, helping many Australians across the country secure property.
The Reserve Bank has reduced the official cash rate by 2.25 per cent since November 2011, reaching the current historic low earlier this year.
"As a result of the easing monetary policy, housing affordability in Australia has been improving slightly for the past two years and the proportion of income required to meet home loan repayments is at its lowest since the June quarter of 2003," said Mr Bushby in a September 3 statement.
However, Mr Bushby did state that further reductions could help the industry to grow.
"Keeping interest rates low is essential not only for encouraging first home buyers into the market but it’s vital to further stimulate building activity and provide new jobs in the housing industry," said Mr Bushby.
"Housing affordability is a real issue for Australians and first home buyers need an incoming Government to address this through a comprehensive housing policy."
Speaking with a financial expert about your home loan situation and the options available to you can help you to secure property throughout the nation and aid your investment.
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.