The Reserve Bank of Australia (RBA) has announced that it will leave the cash rate at 1.50% for yet another month, making it 12 months at the record low rate.
Governor Philip Lowe had this to say in his official statement: “Conditions in the housing market vary considerably around the country. Housing prices have been rising briskly in some markets, although there are some signs that these conditions are starting to ease. In some other markets, prices are declining. In the eastern capital cities, a considerable additional supply of apartments is scheduled to come on stream over the next couple of years. Rent increases remain low in most cities. Investors in residential property are facing higher interest rates. There has also been some tightening of credit conditions following recent supervisory measures to address the risks associated with high and rising levels of household indebtedness. Growth in housing debt has been outpacing the slow growth in household incomes.”
So, what does all this mean for Sydney home owners? As we’ve mentioned before, many lenders change their interest rates at their own discretion. Recent trends have seen interest-only loan rates rise sharply for a number of the major lenders. If you’re uncertain about which home loan is best for your personal needs, make sure to speak to an expert adviser at Euphoria Loans for a free consultation & to visit your options.