The RBA decided this week to keep the official cash rate on hold at 1.0%, which means it remains at its lowest level in Australian history.
But mortgage broker Louise Lucas of the Property Education Company says the RBA’s recent decisions (with cuts in June and July) have prompted plenty of movement in interest rates among the big lenders.
“Some have passed on sizeable reductions in variable rates, while others have been slammed for not passing on the full rate cuts,” Lucas says. “Overall, interest rates remain low, there’s strong competition among lenders for borrowers and home values continue to be soft in most markets. In other words, now is a great time to buy.”
Experts generally agree that November is the month the RBA board is most likely to make its next move on rates, as it waits for its two recent cuts to take hold along with government action to boost consumer spending. Meanwhile, lenders who are easing their loan serviceability terms continues to grow. Most have reduced their interest rate floors from above 7% to somewhere between 5.3% and 5.7%.