Staying low a high for mortgage holders
Interest rates have been held through October at 2.5 per cent, a historically low cash rate and for the 14th consecutive month, it makes it the longest rate hold in more than 10 years.
In a decision that has home owners rejoicing and first home buyers celebrating, the Reserve Bank of Australia (RBA) has kept interest rates on hold for more than a year.
In a statement released by the RBA, governor Glenn Stevens said the Bank expected growth to be a little below trend for the next several quarters.
“Interest rates are very low and have continued to edge lower over recent months as competition to lend has increased,” he said.
“Investors continue to look for higher returns in response to low rates on safe instruments.
“Credit growth is moderate overall, but with a further pick-up in recent months in lending to investors in housing assets. Dwelling prices have continued to rise over recent months.”
The interest rate hold was largely anticipated by the finance industry; with experts tipping no further rate rises this year.
Have you worked out what your interest repayments would be on your first or dream house? Use the Choice Home Loans online tools or talk to an expert at Choice Home Loans today.
Contact them at email@example.com or call 1300 2 CHOICE