Home News Unchanged interest rate is good news for homeowners

Unchanged interest rate is good news for homeowners

Font size :

Property owners have been given a welcome piece of good news in the lead up to Easter, with the RBA deciding to leave the official cash rate unchanged at 4.75%.

While it came as no surprise, the decision to keep the rate on hold drew praise from property industry insiders, with the REIA stating that housing unaffordability demanded a soft approach to interest rates.

"The proportion of income required to meet home loan repayments increased 0.5 percentage points to 35.3% in December 2010, up from 34.8% in September 2010.  Over the year, housing affordability decreased 4.6 percentage points," said REIA president David Airey.

With the long Easter weekend on the horizon, Mortgage Choice spokesperson Kristy Sheppard believes that the RBA’s decision is good news for house hunters.

"Potential and current mortgage holders can settle into eating their Easter eggs with extra glee, and I'd say the former group will now be more enthusiastic about using the upcoming long weekend for their property hunt," she said, adding that the decision to keep the rate on hold sits in stark contrast to the rate hike seen in the lead up to Christmas.

"Then, consumers were hit by a 0.25 percentage point cash rate rise followed by significant home loan interest rate rises above and beyond that by a number of lenders,” she said.

"The tune has definitely changed. Many lenders are now working hard to attract both residential and business loan customers by introducing special offers and incentives, readjusting their fixed rates downwards to compete with peers and bringing out a range of variable rate discounts.”

The RBA’s next interest rate decision will be made on 3rd May.

 

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate

The sprawling redevelopment aims to boost the supply of affordable housing in Sydney Read more

A new suburb will be built in west Melbourne A new suburb will be built in west Melbourne Mount Atkinson will become home to more than 22,000 people over the next 15 years ... Read more

Surging house prices threaten liveability in Melbourne Surging house prices threaten liveability in Melbourne Analysts warn the city could become just as unaffordable as Sydney, if property trends continue ... Read more

More Aussies would benefit from regional hubs linked to cities More Aussies would benefit from regional hubs linked to cities Shorter commutes could spur higher home sales in regional towns, analysts say ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Aug 17, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords