HOME LOAN MARKET UPDATE | JULY 2019
The Cash Rate has hit an all time low!
The cash rate has hit an all-time low! The Reserve Bank of Australia (RBA) has cut the official cash rate by 25 basis points to a new low of 1 per cent, the second consecutive month it has cut rates. It will be interesting to see if the full rate cut is passed on by the majority of banks and lenders. We are expecting most lenders to only partially pass this latest cash rate reduction on to their customers. If you haven’t already done so, now is a very good time to compare your home and investment loans to ensure you are not paying too much interest.
Client Activity
Since the surprise election result our investor clients have now awoken! There now is stronger sentiment in the property market and this is reflected in more investor client enquiries and loan applications. With negative gearing remaining and lower interest rates, these clients now have identified the next six months as a good buying opportunity. With first home buyers and property upgraders still active I would expect greater competition in the property market in the latter half of 2019. It will be interesting to look back in 12 months time to see if the 2019 election weekend was the official bottoming out of the recent Melbourne property market cycle.
ARTICLE: ‘Tide turning’ as prices in Sydney and Melbourne lift
Finally we discuss the three most asked questions from our clients.
- How much can I borrow?
- What are interest rates expected to do?
- Is it a good time to buy property?
As always if you would like to discuss your own personal situation, please give me a call or send me an email.
Sean
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