Yesterday the Reserve Bank of Australia announced official cash rate would remain unchanged for the next month. At 2.5% it is the lowest official rate in Australia since 1960.
This announcement follows a decline in the official rate since November 2011.
The drop last month was in response to the falling value of the Australian dollar and a rise in the unemployment rate. The rate drop was put in place to offset a potential decline in economic activity. The total reduction is 2.25% down from rates set in November 2011. But while this isn’t great news for the economy, it is good news for home buyers and mortgage holders who have a variable loan.
This may potentially help home buyers looking to get onto the property ladder and first time mortgage holders to save on their repayments.
According to the Real Estate Institute of Australia, the market has been showing signs of recovery throughout June and July with lower interest rates and improving affordability.
If you’re looking to buy a house then there are many considerations to take into account including price, location, amount of money to borrow, which bank to borrow from, other fees including stamp duty and legal fees. As well as this there are structural inspections that need to be made before you purchase a house.
There are a lot of questions to ask and groundwork to do before you start looking for a house. A checklist can help you – making sure you tick all the boxes of things to consider when you plan to buy a house.