RBA Cash Rate On Hold, As Lenders are in a Hurry to Hike Fixed Rates

RBA Cash Rate On Hold, As Lenders are in a Hurry to Hike Fixed Rates

The Australian Reserve Bank (RBA) decided at its meeting today to keep the official cash rate unchanged at 0,10%. Please visit the Reserve Bank website to view the official RBA statement.

The RBA confirmed at its previous session that it was 30 June 2021 for the final date of the Term Funding Facility drawings. “The Board does not consider further extension of the facilities because financial markets in Australia are operating well,” said RBA Governor Philip Lowe.

RBA has upgraded its inflation and its forecast for economic growth but emphasises that low-interest rates remain at low wage growth for another three years. In its July meeting, the Board will consider extending its purchases of government bonds. Mr Lowe said the Board is prepared to purchase additional bonds to help improve the employment and inflation objectives.

The competition for Australia’s limited supply of homes is increasing because of the low-interest rates.

The Term Funding Facility of RBA is closed in June and no longer provides low-cost lenders with funding. But what does it mean to interest rates on home loans?

Borrowers are pushing up their costs and interest rates, encouraging borrowers to keep their interest rates lower.

For borrowers with less than 10 per cent deposit, ING bank has raised the cost by up to 80 basis points. But for those with a bigger deposit, fees are reduced.

In the meantime, Citibank is reducing fixed-rate loans by up to 15 basis points by both variable and 1-2 year.

Philip lowe, RBA Governor, also encourages borrowers to request a more competitive deal from their lenders and says that “if you are not, then change to a bank to do so.”

Wouldn’t you like a high-rate home loan to stuck? Our home loan advisors can find out if you have the option of a lower-rate home loan with over 25 lenders on our site.

If you plan to buy a home loan soon, it is essential to contact us to arrange a pre-authorisation. If you find the right property and the ability to negotiate confidence, a pre-approval will help you move quickly. Tell us today about your plans.

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