There was no movement at the station – the monthly meeting of the Reserve Bank of Australia today produced no surprises, as the Board left the official cash rate on hold at a record low 1.5%. In fact, it’s expected that interest rates will most likely remain in a holding pattern for the near future.
Although rates remain steady, the confidence levels of Australian business are increasing. The Australian Institute of Company Directors has found that 57% of business directors are anticipating growth – the highest level in 6 years. This has been driven by increased optimism about the Australian, Asian and US economies.
Lower interest rates driving employment
Several world bodies agree, with the IMF and the UN’s Economic and Social Commission for Asia and the Pacific (UNESCAP) taking note of the boom in the Australian economy. This comes off the back of a lower rate of unemployment.
The housing market is now settling into the cooler months, which is an ideal time for mortgage holders to consider their options. So if you haven’t reviewed your home loan or your interest rates in several years, now is the perfect time.
There is nothing to lose (and much to gain) from reviewing the equity in your house and the terms of your loan. You may find yourself presented with a number of options, including reducing your monthly payments, paying your home off sooner or even looking at the possibility of acquiring an investment property. As always consult your mortgage broker for advice.