It comes as no surprise that the Reserve Bank of Australia (RBA) has elected to leave the cash rate on hold at the historical low of 1.50%. Governor Philip Lowe had this to say in his official statement:
“Lenders have announced increases in mortgage rates, particularly those paid by investors and on interest-only loans.”
“Conditions in the housing market continue to vary considerably around the country. Prices have been rising briskly in some markets and declining in others. 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 recently announced supervisory measures should help address the risks associated with high and rising levels of indebtedness.”
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. Keep a close eye on any rate movement, and consider whether your current loan is the right one for you, right now.