After a much appreciated break from the RBA over the Christmas and New Year period, they’re frustratingly back with a bang, this time in the form of another 0.25% increase to the cash rate. Lenders will have no trouble passing this on to existing customers, and will no doubt point to the cost of funding as their reasoning.
Home loan interest rates are now comparable to the buffered assessment rates borrowers faced just 12 months ago, which is concerning for those who reached for their maximum borrowing capacity to get into the property market.
Our owner Scott Matthews has provided a little optimism for our clients, “It’s like we’ve all ridden a bike to the top of the biggest hill. I expect that in the next 12-18 months you’ll see rates drop and things will only get better from there. What we will now see over the next few years is wage growth and then dropping interest rates. In the medium term we will be better off”.
Australian home loan customers should be proud of their resilience to adapt to repayment increases in recent times, there might be a little more pain, but it appears as though we are reaching a peak and the market will turnaround soon enough.
We can’t stress enough how important a home loan health check is in today’s market. Let us help you and check in on your home loan interest rate today.