At its monthly meeting today, the Reserve Bank has again confirmed the official cash rate will remain at 0.10%.
Concerns continue to be expressed that record low interest rates are fuelling a housing boom, increasingly putting property ownership out of the reach of many prospective first home buyers and placing the wider economy at risk by creating a housing ‘bubble’.
The RBA remains very reluctant to increase rates, fearing that doing so will result in an increase in unemployment and a further reduction in wage growth which could be just as harmful to the economy.
The likely outcome is that the Australian Prudential Regulatory Authority (APRA) will look to cool the housing market by introducing so called macroprudential controls, aimed at restricting what it deems to be riskier borrowing for housing.
An AFG broker can answer your questions and look at your circumstances to make sure you’re prepared for what could be coming next. This could mean refinancing or approaching your lender for a better rate. Because an AFG broker does this type of work every day, they have a pretty good idea what lenders can do to win or keep your business.
We’re here to help if you have any questions. Please don’t hesitate to get in touch with an AFG broker.