The Organisation for Economic Cooperation and Development (OECD) has urged the Reserve Bank of Australia to raise interest rates next year to prevent housing prices rising to risky levels and potentially “unwinding sharply”.
The advice from OECD comes as a warning to Australia’s property market with house values surging and interest rates at record lows.
Australia is expected to see sluggish economic conditions lingering until 2016, weighed down by cooling commodity prices and declining resources sector investment, the Australian Financial Review
The Paris-based agency added that Australia’s economy is only likely to perform at a below average rate of 2.5% in 2015, before recovering in 2016 if consumption and exports pick up.
It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan