The Reserve Bank of Australia has left the cash interest rate once again, and now all eyes are on the big banks to see if they'll follow suit, or raise their mortgage rates despite the cash rate staying as is.
What would a rise in the bank’s interest rates mean for homeowners? Unfortunately it would mean added pressure and strain on the hip pocket of mortgagees, and a possible slowing of borrowing yet again.
Just when the market seems to gain momentum, speculation about mortgage rates potentially puts doubt in the minds of potential homebuyers and borrowers, making it hard for the housing market to rebound fully.
With Christmas looming ever closer, and increasing cost of living on everybody’s minds, we will watch with bated breath as to how the banks react to the latest announcement by the RBA to keep the cash interest rate steady, and will watch closely, the affect their decisions have on everyday mum’s and dad’s in the property market.
Remember, always seek independent professional financial advice before entering any property transaction. All information pertaining to finance is of a general nature and does not take your personal situation and circumstances into consideration.