The Reserve Bank of Australia (RBA) could stay on the sidelines as eastern states battle further outbreaks of COVID-19 with Victoria in lockdown due to a second wave of the coronavirus, according to mortgage aggregator Finsure Group.
Finsure managing director John Kolenda said that the RBA looks set to keep its cash rate at a record low of 0.25 per cent for the rest of the year.
“The RBA reducing rates any further at the moment would have little impact on the economy and could do more harm than good,” he said.
While not much activity is expected around official interest rates, home loan customers are still in a strong position with lenders offering a new round of rate cuts, according to Mr Kolenda.
“If you have a home loan rate with a ‘3’ in front of it talk to your bank, or better still seek expert assistance from a mortgage broker,” he said.
“All [owner-occupiers] should now be paying a rate in the low ‘twos’ and saving more than 1.0 per cent on a variable loan.
“On an average loan this saves hundreds of dollars a month.”
Ultimately, mortgage holders should not be afraid to seek a lower rate even if they have been on a six-month repayment holiday.
“Banks will offer a better deal if you are ready to resume repayments so don’t be complacent about your interest rate as this can potentially cost you a lot of money,” he said.
“Contact a mortgage broker to make sure you are getting the best terms possible.”