Not many people saw it coming, but the RBA took the decision to cut rates by 25bps at their February meeting. Rates had been on hold since August 2013, and now sits at a new record low 2.25%.
The reduction in interest rates is expected to encourage first home buyers, to look more seriously at getting their foot onto the property ladder.
At a local level this trend has already started to become evident prior to the rate cut, with properties in the sub $400,000 price bracket achieving levels of enquiry over the first months of 2015 not seen for many years.
This is a trend we expect to continue, and with Canberra rental prices showing signs of stabilising, falling commodity prices placing pressure on share market portfolio’s, and interest rates on bank deposits falling we expect more investors to start turning back to property. Headwinds do remain, with RBA Governor Glenn Stevens visiting Canberra this past week to advise on the pressures evidence in the global economy.
As a result of the most recent rate cut our Loanmarket mortgage brokers are fielding strong volumes of enquiry from our clients – many of whom have not refinanced since they last purchased or sold. Almost exclusively Chloe & Robyn have been able to access a lower rate, and are still providing no cost, obligation free finance health checks if you want to ensure that you’re not paying too much.