RBA Holds Rates – What next?

The Reserve Bank has today left the cash rate unchanged at 2.25% amid furious pre-announcement speculation of another cut.

Whilst most borrowers are jumping for joy, the impact on the housing market is yet to be qualified as we head into unknown territory – record low rates, strong property prices and low supply – and there is a chance of tighter lending policy on the horizon.

In its announcement the RBA stated “Credit is recording moderate growth overall, with stronger growth in lending to investors in housing assets. Dwelling prices continue to rise strongly in Sydney, though trends have been more varied in a number of other cities over recent months. The Bank is working with other regulators to assess and contain risks that may arise from the housing market. In other asset markets, prices for equities and commercial property have risen, in part as a result of declining long-term interest rates.”

Getting the best out of the here and now low-rate environment means paying down debt is critical. Use any extra funds to reduce your borrowings and you’ll save both time and money off your loan.

If you are looking to purchase a home, business or equipment or reduce your monthly repayments, now is the time to negotiate. 

In addition to low rates your Green Finance Group Finance Consultant has access to additional benefits not always available in the broader marketplace, including access to lower (or even no) lenders mortgage insurance, even if you are borrowing up to 90% of the property value.

If you’d like to know if you could get a better deal on your home, equipment or business finance just ask us. Call 07 3899 2866 for a no-obligation finance review.

The next RBA board meeting will be held on Tuesday 7 April, 2015.