At the August 1st meeting the Reserve Bank of Australia (RBA) allowed home owners to breathe easier by pausing the official cash rate for the 2nd month in a row.
The Reserve Bank of Australia has just announced a hold to the cash rate at 4.10% for the month of August, the third cash rate pause for 2023.
Two of the major banks (ANZ & NAB) were on the frontline of predicting the board’s decision to pause the cash rate today as we have seen a further decline to inflation which came down to 5.4% for the month of June, being below market expectations.
While housing values continue to record a broad rise across the country, CoreLogic Australia Australia records show that Sydney has seen a significant rise in the number of fresh listings added to the market, 9.9% higher than the same time last year and 18.0% above the previous five-year average.
CoreLogic’s Tim Lawless advises “Some resilience in growth across the middle and more affordable end of the market aligns with housing finance data which has shown a stronger bounce back in the value of lending to first home buyers and investors over recent months.”
The good news
The good news for borrowers is that whilst rates are on hold, there are still many benefits to shopping around your home loan and finding a better deal. This can save you $1,000’s each year and help with your cash flow.
Some options we can help you explore include refinancing (which could involve increasing the length of your loan and decreasing monthly repayments), debt consolidation, or building up a bit of a buffer in an offset account ahead of more rate hikes.
If you’re keen to switch and save, get in touch with one of our local specialists today. Understanding your options can start with a simple phone, web, or in person discussion.
Check out our guide on home loan refinancing!
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This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.