Despite rates being left on hold yesterday, there are positive signs that should be encouraging to property buyers, according to Mortgage Choice.
Consumer confidence is “worryingly low” said spokesperson for Mortgage Choice, Belinda Williamson, and while this may reflect an understandable concern about rising costs of living, the pace of the economy’s recovery should be seen as a positive.
“While consumers are struggling to gain confidence, there is encouraging economic data that shouldn’t be ignored. According to QBE’s latest Australian Housing Outlook report, Australia is experiencing high levels of housing affordability, with the proportion of household income being put towards mortgage repayments falling in all capital cities.
“In fact, apart from a period in 2009 when the RBA cut interest rates aggressively in response to the GFC, we are looking at the best levels of affordability across most capital cities since the beginning half of last decade,” said Ms Williamson.
While a rate cut would have been a “win” for borrowers, every other saving that can be made on your home loan will make a difference.
“Take this opportunity to get a home loan health check by asking your mortgage broker whether savings can be made on your home loan, or even whether there is a better priced product on the market for you. Further to this, don’t forget to contribute any extra dollars to your home loan when you can, to help build equity and repay your loan sooner,” she said.