At its October meeting, the Reserve Bank of Australia has again opted to keep the official cash rate unchanged at 1.5 per cent. Economists widely anticipated the RBA’s decision, with many predicting no further RBA rate changes until next year.
What else is happening in the loan market?
Interest only loans: There has been a significant reduction in the number of interest-only loans taken out by borrowers in recent months. This is a result of banks responding to regulatory tightening by APRA. If you need an interest-only loan, talk to a mortgage professional as they know which lenders are still offering these loans.
Fixed interest loans: With interest rates at historical lows, fixed rate loans are becoming increasingly popular. If you’re interested in fixing your rate, it could be a good time to talk with a mortgage professional about how this option could work for you.
Loan pre-approvals: Spring is a busy time of year in our property markets. If you’re planning to buy a home or investment property, it may be a good idea to talk to a mortgage professional now and arrange pre-approval on your loan.