In this edition of the Bernie Lewis Home Loans Market Update, we present some unwelcome news. With many eyes across the country firmly fixed on the Melbourne Cup this past Tuesday, the RBA sneakily announced an increase to the Cash Rate by another 25 basis points to 4.35%. Even though many braced for this result, it still doesn’t make it hurt any less.
We don’t agree with the decision, we are frustrated and hurting for our valued clients. In the coming days, you can expect the majority of lenders to pass on this rate rise to their consumers. Please touch base with us to find out how this will impact your repayments or your pending approval.
The RBA indicate that they will do whatever they need to do to bring inflation back in line with their target band of 2-3%. The RBA will again meet on the first Tuesday of December, but we hope this week’s increase was implemented to allow for pause over the holiday season and to reassess in February 2024, when they return for the new calendar year.
Economic leaders suggest that whilst the rate rise might have been hasty and not universally supported, it was a necessary evil to combat rising retail spending into the holiday season and to slow growth in the property market. There is concern for the economy post this cash rate increase, and interest rate cuts are thought to be back on the agenda for quarters 2 & 3 in 2024.
Looking at the future with an optimistic eye, Australia’s largest bank has lost market share for 3 consecutive months, which could just be motivation to drive competition harder through more competitive product offerings. Typically when the big Australian banks position themselves ultra competitively, the entire market subsequently reacts. Watch this space.
Many of our clients are navigating increases to home loan repayments by ensuring they aren’t trapped with an interest rate that is too high. Our simple review process will quickly indicate whether or not we can find real savings on your home loan, and assist with the growing burden of increased mortgage repayments.
