The RBA has decided to leave interest rates on hold for the 24th time in a row (the bank do not meet in the month of January). The official cash rate has remained at the record low of 1.50% since August 2016, with no sign of change to come.
Last month’s statement by Governor Philip Lowe noted the low level of interest rates is continuing to support the Australian economy. He cited business conditions are positive and non-mining business investment continues to increase, with higher levels of public infrastructure investment and growth in resources exports supporting the economy.
Low Interest Rates – Get Ready to Apply for a Mortgage
With the Spring season officially underway, Mozo property expert Steve Jovcevski says, “it’s probably the year of the first homebuyer.” However, it’s worth noting a tightening of lending criteria means you need to be well prepared before you approach lenders.
Even if you aren’t looking for a mortgage now, you will want to ensure your finances are in place well ahead of time. Here are a few things to keep in mind:
- You’ll need to ensure you have a good credit rating (you can check yours out online by searching ‘what’s my credit rating’ – it will probably cost you a small fee but it’s important to know as you can take steps to improve it.
- You’ll need more information when applying – your monthly income and expenditure will need to be clearly documented and accurate, with accompanying bank statements.
- Expect longer approval times; be sure to apply before you find ‘the one’ – to ensure you are in a position to buy your dream home.
We’re here to help you with any questions you may have, so if you need more information on current interest rates or would like to sit down and go over what you need for a pre-approval, give us a call.