Property buyers looking to secure a home loan may be interested to hear that the Reserve Bank of Australia (RBA) has decided to leave the cash rate unchanged at it's most recent monthly board meeting.
The current 2.5 per cent is a record low for Australia and is the latest in a series of cuts that first began in 2011. While the effects are only just beginning to bear fruit, RBA Governor Glenn Stevens said in a statement that there have been recent signs that households are beginning to increase their demand for finance.
Housing Industry Association (HIA) Chief Economist Dr Harley Dale has said the September board decision was expected, although he believes the RBA will make another move during the final quarter of this year.
"The bank should be prepared to ease rates further in coming months given the modest nature of the recovery underway in residential construction," Dr Dale said in a September 3 statement.
"A final round of interest rate cuts in late 2013 would coincide with a likely boost to household and business confidence following the federal election."
Changes to monetary policy can have a significant impact on home buyers. Fluctuations in the official cash rate, as handed down by the RBA, may be passed on by banks in their own home loan interest rates.
While this month has seen no change in the policy, the current low rate of 2.5 per cent could still bring about good news for those looking at their home loan options.
A mortgage broker can help you with your search for the right home loan by providing professional advice and assistance throughout the process. Brokers also have access to a wider range of lenders and products, so you can find the loan that really suits your needs.