Hervey Bay Independent : 16th June 2016
RBA takes a wait and see approach to rates Following last month’s cash rate cut and a raft of positive economic data, the Reserve Bank of Australia has decided to leave the offi cial cash rate on hold at 1.75%. Mortgage Choice mortgage broker and franchisee Peta Short said ongoing strength in the property market combined with a surge in consumer sentiment gave the Reserve Bank all the incentive they needed to leave the cash rate untouched. “Data from the Westpac Melbourne Institute of Consumer Sentiment found confi dence climbed 8.5% over the month of May to the point where optimists now signifi cantly outnumber pessimists,” Peta said. “In addition to the spike in consumer sentiment, research conducted by CoreLogic shows property values continue to climb month on month.” Over the month of May, property prices across the combined capital cities rose 1.6%, taking values 10.0% higher for the 12 months to June. “Sydney was once again the standout performer, with property values surging 3.1% throughout the capital city. Over the last 12 months, property values have climbed by more than 13% in both Sydney and Melbourne, which highlights the ongoing strength of these two property markets.” Peta said this infl ux of positive data would have given the Reserve Bank enough of a reason to be happy with their current stance on monetary policy. Moving forward however, Mrs Short said future rates cuts could not be ruled out. “Depending on what impact the federal election has on consumer confi dence and other key economic metrics, we may see the Reserve Bank of Australia cut the cash rate at least once more this calendar year,” Peta said. “Regardless of what the Reserve Bank decides to do in the future, the fact remains that interest rates now sit at historical lows – making the cost of borrowing more affordable than ever before. “Last month’s cash rate cut has helped reduce home loan interest rates even further, giving potential and existing borrowers the chance to snag a very sharp home loan deal.” For anyone who hasn’t reviewed their mortgage recently, Mrs Short said now is the perfect time for people to review their home loan and see whether or not there is a better deal available. “Some lenders are offering rates as low as 3.89%. With that said, borrowers may just fi nd there is another product that is not only better suited to their needs, but boasts a sharper home loan rate – saving them thousands of dollars in interest over the life of their loan.” Start paying off your own home rather than someone else’s You may be pleasantly surprised by what you can afford and how reasonable owning your own home can be compared to renting. We’ll help you work out how much you can borrow, find a home loan that suits you and calculate the best way to make your repayments affordable. Contact us to book an appointment today. Important information This article is for general information purposes only. It has been prepared without considering your objectives, fi nancial situation or needs. You should, before acting on the advice, consider its appropriateness to your circumstances. About Mortgage Choice Mortgage Choice is an ASX listed company that seeks to help Australians with all of their fi nancial needs. Established in 1992, Mortgage Choice was originally established to help Australians improve their fi nancial situation by offering a choice of home loan providers, coupled with the expert advice of a mortgage professional. Since that time, the company has grown and developed into a fully fl edged fi nancial services provider. Today, Mortgage Choice helps customers source car loans, personal loans, credit cards, commercial loans, asset fi nance, deposit bonds, and risk and general insurance. Further, the company offers Australians access to real, relevant and affordable fi nancial advice through our qualifi ed fi nancial advisers. Mortgage Choice has no balance sheet or funding risk, and consistently delivers strong profi ts and attractive yields. It listed on the ASX in 2004 (MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA). Mortgage Choice holds an Australian Credit Licence: no. 382869 and Mortgage Choice Financial Planning Pty Limited holds an Australian Financial Services Licence: no. 422854. Both licences are issued by ASIC. Recent recognition: 2014 Australian Broking Awards Best Diversifi cation Program; 2013, 2012, 2011 Australian Broking Awards Major Brokerage of the Year – Franchise; 2013, 2012 Australian Broking Awards Best Ethical/ Social Responsibility Program; 2012 Australian Broking Awards Best Training and Education; No.1 on The Adviser magazine’s 2012, 2011, 2010 and 2009 Top 25 Brokerages list; 2012, 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2011, 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2010 Forbes Asia-Pacifi c Best Under A Billion list. Visit www.mortgagechoice.com.au or call customer service on 13 6678. Hervey Bay 4124 7822 Maryborough 4123 5022 firstname.lastname@example.org MortgageChoice.com.au/peta.short Mortgage Choice Limited ACN 009 161 979. Australian Credit Licence 382869.
9th June 2016
23rd June 2016