HOME LOAN MARKET UPDATE | JUNE 2019
RBA lowers the cash rate
In this month’s market update we discuss The Reserve Bank of Australia (RBA) decision to lower the cash rate from 1.50% to 1.25% and what this means for the housing and credit sectors. This is the first rate cut in nearly three years and is welcome news for all property owners. Two of the major banks, CBA and NAB have responded by passing on the full 0.25 percent rate cut, while ANZ (0.17%) and Westpac (0.20%) did not. Below is an update on recent bank/lender rate cut announcements:
ANZ -0.18%
Auswide -0.25%
Bank of Melbourne -0.20%
CBA -0.25%
ING -0.17%
NAB -0.25%
Westpac -0.20%
All other lenders -Yet TBA
What impact will the RBA cut have on the property market?
I believe we will look back on this time as the bottoming out of the Melbourne property market. There is now positive sentiment in the property market for the first time since mid to late 2017. The greatest indicator of this change in sentiment is our investor clients now enquiring about their borrowing capacity. It seems they are now keen to jump back in and invest in residential property. This renewed interest comes as a response to the recent election result and negative gearing benefits remaining. Lower interest rates will only strengthen the property outlook for investors. With investors coming back into the market we expect there to be more buyers and greater competition.
As always if you would like to discuss your own personal situation , please give me a call or send me an email.
Related Post
HOME LOAN MARKET UPDATE | APRIL 2019
Are you thinking of renovating or building? In this month’s monthly market update we are off site at one of our clients properties in St Kilda East. This client has recently completed a major renovation on their property and required a construction loan that we...
HOME LOAN MARKET UPDATE | MARCH 2019
Increased likelihood of Interest Rates falling In this month’s monthly market update we discuss the possibility of interest rates falling further and the reasons why. This would be welcome news for all home owners as it would decrease monthly loan repayments...
HOME LOAN MARKET UPDATE | FEBRUARY 2019
Royal Commission recommendations impact Mortgage Broking industry In this month’s monthly market update we change tact and discuss the recent Royal Commission (RC) recommendations on the mortgage broking industry and how we are paid. To the great surprise and...