The Reserve Bank‘s April announcement to leave the cash rate unchanged at 2.25% for the second consecutive month left the majority of speculators with ‘raised eyebrow’ syndrome.
Most economists were predicting a cut and whilst many are still wagering a 0.25-point drop to come through in May, there’s definite uncertainty in the air.
The weaker Aussie dollar, low inflation and a pick-up in business lending combined with the continued flurry of activity in Sydney and Melbourne property markets has influenced this month’s decision to ‘wait it out’.
Whilst Sydney and Melbourne markets are getting the spotlight it’s undeniable that most other majors are experiencing good growth and Brisbane residential property prices are also on the rise leaving many homeowners with increased equity and opportunity.
Low rates won’t last forever so you need to be smart about what you can achieve while the going is good.
If you want to save time and money off your existing loan, use extra funds to pay more than your minimum repayment.
If you’ve owned your home for more than a few years, chances are you’ll have built up equity allowing you to borrow against your property for things like home renovations or to purchase an investment.
If you are looking to purchase a home, business or equipment or reduce your monthly repayments, now is the time to negotiate a great deal.
Find out how the current low interest rate environment can work for you, simply call us on 07 3899 2866 for a no-obligation finance review.
The next RBA board meeting will be held on Tuesday 5 May, 2015.