In the August update, the RBA have left the cash rate at 1.5%; many may see this and think how does this really affect me?
Great question, and not a definitive answer because we all have different circumstances however for most home owners they breathe a sigh of relief as the perception is that their rates will not increase.
The details behind the ongoing halt to interest rates are the real kickers, the real things we should be reading and understanding.
Banks have started lifting rates outside of the RBA as they’re not approving as many loans and they need to continue to be profitable for their shareholders and investors alike.
This stems from the ‘Royal Commission into banking in Australia’ many banks, brokers and financial advisers have been in the headlines with negativity as a result of the Royal Commission and have tightened their belts on lending more money to clients.
With getting a home loan now being a harder task; additional hoops to jump through.
A property crash in Melbourne and Sydney and overall a lot of uncertainty the market is slowing and people are feeling the start of what I believe will be an ongoing tightening and potentially a crash to the Australian Finance and property market.
This all sounds very scary right?! This is why you need a professional who lives and breathes the industry on your side.
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