"Official Cash Rate Remains Unmoved"

Hi Property Lovers

Good news for home buyers......

The Reserve Bank of Australia (RBA) has today decided not to move the official cash rate from 4.5 per cent due to concern about sovereign creditworthiness in several European markets.
The RBA said the decision not to budge the official cash rate was also to relieve homeowners in the likelihood of inflation reaching upper levels over the next 12 months.
It's a good time for investors to reassess their situation for the next six months when a rate rise does happen, said Mortgage and Finance Association of Australia chief executive officer Phil Naylor.
"Increasing mortgage repayments coupled with rising fuel and food costs means balancing the household budget can be very challenging," said Naylor. "Homeowners should evaluate opportunities to save money within the parameters of their home loan contracts."
Naylor emphasised the importance of flexibility, and to compare home loans and not only rates.
Mortgage Choice senior corporate affairs manager Kristy Sheppard said that regardless of the RBA decision, the official interest rate has little impact on mortgage rates these days anyway.
"The focus should be on whether lending institutions move rates outside the RBA cycle, as they have indicated is a possibility due to the continued volatility in their cost of the funds," she said.
"Borrowers of all types are most probably happy with the June cash rate decision, which is terrific, but our advice is to watch your lender to check your debt repayments are not increased regardless."

This information was gathered from:

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