What does this mean for home buyers?
The Reserve Bank of Australia (RBA) has held the cash rate at a record low 0.1 per cent. That’s good news for the Australian property market.
The RBA is Australia’s central bank. It implements policies to help maintain the health of our economy. Altering the cash rate is one method used to influence the level of consumer spending in the economy. A low cash rate is beneficial for potential home buyers. This is because the banks use the RBA cash rate as a basis for setting their own interest rates on home loans.
Setting up expectations for the future is also a part of the RBA’s role. As the cash rate is set to influence the level of spending, it also provides an insight in the future of the economy. The RBA has stated that they do not expect to increase the cash rate for at least another three years. By reducing uncertainty in the economy, home buyers can make better spending decisions.
These measures from the RBA help home buyers feel more comfortable purchasing property. Many of the lenders have already lowered their home loan interest rates in line with the RBA. Lower interest rates will help reduce your monthly home loan repayments. This will put some valuable dollars back into your pocket.
It’s also a great time for first home buyers to consider entering into the market. With the help of government support packages, the property market is more accessible. These include:
Government support packages also make the property market more accessible. Purchasing a home can be more affordable than ever.
National house prices are on track to recover losses suffered in the coronavirus pandemic, Corelogic says. Corelogic are the leading provider of property data, information, and analytics. The RBA have also stated they are willing to provide more support if necessary. This adds another confidence boost to home buyers and the Australian property market.
Talk to a Suitable Loans Mortgage Broker.