The Reserve Bank of Australia (RBA) has announced that it will leave the cash rate on hold for yet another month. 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 are the slowest for two decades. Growth in housing debt has outpaced the slow growth in household incomes. The recent supervisory measures should help address the risks associated with high and rising levels of household indebtedness. Lenders have also announced increases in mortgage rates for investor and interest-only loans.”
So, what does all this mean for you? As mentioned in the statement by the Governor of the RBA, there have been a number of lenders, including the Big 4, who have recently changed their interest rates at their own discretion. In particular, interest-only loan rates have risen sharply for a number of major lenders. Make sure to keep a close eye on any rate movement, and consider whether your current loan is the right one for you, right now.