To no-one’s surprise the Reserve Bank of Australia (RBA) left rates at 2.5% in its November meeting. The rate has remained unchanged this year as the RBA has continued to find financial conditions remaining accommodative. The RBA expects economic growth to be a little below trend in the short term with the labour market having spare capacity, inflation being well behaved and the Australian dollar being too high. It is likely that cash rates will remain on hold for an extended period.
Official interest rates affect rates offered to both lenders and borrowers. With official interest rates expected to remain unchanged in the period ahead interest rate offerings have basically remained unchanged. Below are the latest “best” rates available.
On the other side of the equation, borrowers with a variable rate home loan are celebrating, as November’s cash rate pause means they won’t be paying bigger mortgage repayments for Christmas.
While very competitive offers are still available in the market, the cost of borrowing has remained essentially unchanged and is likely to stay that way in the short term.
|Providers – investors||6m||1yr||3yr||5yr|
|Big Sky Building Society||3.25%||3.50%||4.20%||4.00%|
|Gateway Credit Union||3.36%||3.50%||4.20%||4.26%|
|Loans.com.au||Dream Home loan||4.54%|
|State Custodians||Peak Performance Offset||4.59%|
|Australian Unity||Professional Package||4.63%|
* The comparison rates for all home loans are based on secured credit of $150,000 and a term of 25 years. WARNING: The comparison rate applies only to the example given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees and cost savings such as fee waivers are not included in the comparison rate but may influence the cost of the loan.
Nick Stratus, Solid Financial Advisers, 6 November 2014