The Reserve Bank of Australia made their announcement today to leave the official cash rate unchanged at 1.5%. It has now been two years since the last cash rate move. We think this is due to a combination of factors including very low wages growth, high underemployment, flattening property prices and home lending and modest inflation. Many experts are predicting it may be some time before we see the next rate movement and it may actually be downwards.
If you are looking to purchase a home or considering refinancing, one decision you’ll need to make is whether to fix your home loan or not.
It’s important to consider both options and align it with your financial goals and needs. Both options have pros & cons and below are some things to think about when deciding.
- Interest rate rises won’t impact you if they rise above your fixed rate, as you have agreed to remain on the same interest rate for the fixed term. Read more