It was a sure bet, and we were all winners this week when the Reserve Bank (RBA) opted once again to leave the official cash rate unchanged at 0.1%.
Australia’s borrowers are taking advantage of the steady run of record-low interest rates, with data showing that an uptick in fixed rate loans.
Mortgage Choice CEO Susan Mitchell was not surprised at the latest decision.
“The bank has signalled it will keep the cash rate at its record low for the foreseeable future”, she said.
Recent research shows that almost one in two (42%) of all loans approved through the national broker had a fixed component.
“We have seen a strong trend towards fixed interest rates over the last two years but this is the strongest demand we’ve seen for this product type since we began recording borrower preference”, Mitchell said.
“While we won’t be seeing any major changes to the official cash rate for some time, lenders continue to offer extremely competitive variable and fixed interest rates.
“Borrowers may still be able to access interest rates under 2% per annum, which means it’s a great opportunity for them to speak to their local mortgage broker about getting a better deal”, she concluded.