The Reserve Bank of Australia has elected to leave the official cash rate at 1.5% which is good news for the new financial year.
What does this mean for you?
Despite the official cash rate remaining unchanged, lenders are continuing to move interest rates. In June 2017, the big 4 banks increased interest rates on interest only loans but lowered interest rates on principal and interest loans. The purpose of this was to push borrowers to switch from interest only loans to principal and interest loans to lower their debts whilst interest rates remain low.
Interesting times ahead.
Watch this space for further updates. If you would like further information on how this may affect you, please contact our property lawyer, Alicia Floyer on 49104023.