April has once again seen the Reserve Bank of Australia (RBA) keep the official cash rate on hold at 1.5%.
It’s great news for home owners, who can continue to enjoy what’s becoming business as usual with the RBA cash rate.
However, there is a growing sense among some commentators that we could see the RBA cut the cash rate later in the year.
Here is what’s happening.
Australia really has been the ‘lucky country’, enjoying an enviable 28-year run of unbroken economic growth. But, there are signs the economy is slowing.
That’s not to say the economy is expected to go backwards. The RBA says Australia is still on track to achieve 3% growth this year. Unemployment remains very low, and it’s expected to fall even lower over the next few years.
Nonetheless, the RBA is concerned that lower house prices in some cities (notably Sydney and Melbourne) have the potential to impact household spending at a time of low wages growth.
The bottom line is that the cash rate may be on hold right now. But it’s a case of watch this space to see what happens in the months ahead.
What it means for you
You don’t have to just wait around to see how lenders and the RBA change rates. It may be possible to make a rate cut of your own.
Research by Aussie highlights the potential for big savings just by switching to a different loan or lender, with the longer you’ve held your mortgage offering greater potential for savings.
Aussie customers are saving an average of 0.66% on home loan interest rates when they refinance. And it’s making a real difference to repayments.
Based on Aussie’s average refinance loan size of $346,310, customers who have refinanced have saved, on average, more than $134 per month or $1,614 per year.
That’s money kept in your pocket instead of going to the bank. For this reason and many others it’s so important to ask your Aussie Broker to do a free review of your loan to make sure it’s still competitive and suits your needs.
And don’t forget, if you have a free appointment before 30 April 2019, you’ll go in the draw to win $15,000*.
*T&Cs apply, see aussie.com.au/promotions.
