The Reserve Bank of Australia has left official interest rates on hold – it remains at 2.25%. This comes as continuing good news for mortgage holders, who are experiencing a low rate of monthly repayment, which provides a welcome budgetary relief (and perhaps some spare spending money).
Meanwhile, the housing market continues to be sizzling hot – building approvals are at their highest level in history and property prices skyrocketing, particularly in Sydney, where prices rose by 3% in March and almost 14% over the past year.
Historical low interest rates
The combination of an historical low interest rate and increase in new dwellings will no doubt be welcome news for those who are looking to invest in property. With the Australian population inching towards 24 million people, the need for rental properties has never been greater.
For those who are simply happy to see their monthly mortgage payment decrease, today’s news will also be a boost to savings. More people are getting ahead on their mortgage repayments.
The General Manager for home loans at the Commonwealth, Dan Huggins says that “With historically low interest rates, it’s good to see that many borrowers are taking the opportunity to get their finances in order, pay down debt and give themselves more room to move.”
So, whether you’re looking to invest in property or simply want to make sure that these historically low interest rates are to your advantage, feel free to give us a call – we’re here to help.