Affable home loan conditions following Reserve Bank of Australia cash rate decision

By the resi financial blog team, 05 March 2014

Home loan rates low in Australia

First home buyers and investors alike could be interested to hear about the most recent Reserve Bank of Australia (RBA) cash rate decision, which has retained the official rate at the historically low level of 2.5 per cent for at least another month. This is good for anyone interested in taking out a home loan in the near future. 

The official cash rate affects the economy in a number of ways, including dictating the interest rates that financial institutions themselves pay to lend money out to customers. The basic logic behind this is that the lower the official cash rate, the less these lenders are charged for their services. 

Therefore, these savings are often passed onto their customers in order to remain competitive and keep ahead of the game. Because the cash rate is currently at an all time low, interest rates are similarly quite low - making it the perfect opportunity to secure a great mortgage deal. 

Glenn Stevens, governor of the RBA, released a statement yesterday (March 4) that stated Australia's overall financial situation was accommodative for further growth, with long term interest rates and risks remaining low. Furthermore, dwelling prices have been steadily rising over the last year - highlighting the overall growth of the real estate industry across Australia. 

Housing Industry Association (HIA) Economist Geordan Murray said the decision wasn't unexpected, with the current monetary level helping to sustain economic growth across the nation. 

"The RBA appears satisfied with the way households are responding to current policy settings and particularly encouraged by the improvements in leading indicators of activity in the residential building sector," said Mr Murray in a March 4 statement. 

Now could be a great time to approach a financial lender and discuss your home loan options. If you're after a first home buyer loan or an investment solution, conditions have never been better to chase those property dreams.

Categories: Home Loans, Property Investment