Yesterday, the Reserve Bank of Australia has decided to leave the cash rate at 4.75% for the 7th consecutive month.
In our opinion, the recent fall in Gross Domestic Product (GDP) growth rates, has allowed the Reserve Bank to hold the trigger for the time being.
But this relief may be short term, as this fall in GDP was largely due to the Queensland Floods and Cyclone Yasi, which had a negative impact on the production of bulk commodities from that region such as coal and iron ore.
Although we note that this is a relief for Home Owners and investors, we acknowledge it is general consensus that an interest rate increase is inevitable in the upcoming months.
It may be an opportunity for you to consider other lenders who may be offering a cheaper variable rates, or even consider locking in your current home loan to a competitive fixed rate, which will give you the added security when rates do start to rise.
In the current economic environment, we believe it is now time to consider your home loan and ensure your loan still continues to meet your current and future needs.
Call Liquidity Finance today on 02 9290 2777 or click here for a Home Loan Health Check.
Michael Luca and Danny Luu