Easy decision - no change for now....
We are experiencing a benign environment for interest rate movements either up or down. After APRA regulations restricting availability of loans to investors, we actually saw rates for owner occupied loans fall and the difference between owner occupier and investor interest rate loans is now reducing. APRA are starting to make noises that they are satisfied that the market has stabilised. We're likely to see a flat year for interest rates.
While the economic outlook has, if anything, improved in recent times, the economy is far from overheating, inflation remains well contained, and the Australian dollar arguably remains a tad high. The Reserve Bank has left rates at their current highly accommodative level for now and will continue to do so for at least the next few months to allow the economy to continue to gather momentum. A rate hike will likely become a more serious consideration later in the year.
For now the RBA noted there was uncertainty about household demand for goods and services not being strong enough to boost the economy and inflation. "Household incomes are growing slowly and debt levels are high," RBA Governor, Philip Lowe said.
Most of the economists who think there will be a rate rise this year expect only one, so your mortgage is unlikely to be trashed by a painful spike in borrowing costs.
Regardless of what happens with RBA rate moves, every borrower should be checking their loan and their mortgage rate today.
Should you consider refinancing? What would YOU do with an extra $240 per month? The cash rate set by the Reserve Bank of Australia is at an all-time low. In turn, most lenders are offering the lowest home rates EVER seen!
So....if there are potential savings in the wings, NOW is the time to consider refinance through Blue Chip Mortgages. We could possibly save you a great deal of money in the process!
Please call me on 1300 139 299 or 0408 654 527 and book your complimentary review now. You may be pleasantly surprised with the outcome.
Until next month, stay happy and safe.