No time to rock the rates boat

Stanthorpe Border Post - - REAL ESTATE -

THE Re­serve Bank of Aus­tralia (RBA) should re­sist rock­ing the in­ter­est rate boat while there are so many stormy con­di­tions to nav­i­gate in­clud­ing lenders lift­ing their own rates in­de­pen­dently of the RBA, the

United States- China trade war and the fall­out from the Hayne Royal Com­mis­sion, says mort­gage bro­ker net­work 1300HomeLoan.

1300HomeLoan man­ag­ing di­rec­tor John Kolenda said it will be no sur­prise to see the RBA stay on the side­lines and keep of­fi­cial rates at the all-time low of 1.5 per cent un­til well into next year and pos­si­bly longer. Although, he said there is an un­der­ly­ing fear if things de­te­ri­o­rate any more the cen­tral bank might have to cut rates to stim­u­late a heav­ily bur­dened con­sumer con­fi­dence is­sue.

"This is cer­tainly no time for the RBA to con­tem­plate lift­ing rates as they have to help nav­i­gate us through these un­cer­tain times," Mr Kolenda said.

There are many fac­tors point­ing to the RBA main­tain­ing the cash rate at its present low for the long term. There are some good signs for the do­mes­tic econ­omy with low unem­ploy­ment and signs of more first home buy­ers get­ting back into the mar­ket.

But the royal com­mis­sion find­ings due next year and other el­e­ments such as the US- China trade war, down­ward pres­sure on the prop­erty mar­ket and the fed­eral elec­tion loom­ing could all in­flu­ence con­sumer con­fi­dence in a neg­a­tive way, trou­bling our eco­nomic con­di­tions.

"Lenders have al­ready raised their rates out- of- cy­cle. If the RBA fol­lowed suit that would only be detri­men­tal to con­sumer con­fi­dence in a fall­ing hous­ing mar­ket."

Mr Kolenda said while bor­row­ers con­tinue to deal with a tough lend­ing en­vi­ron­ment, there is still strong com­pe­ti­tion among lenders for their busi­ness.

"My main mes­sage to home loan cus­tomers is to never be com­pla­cent about your home loan and be­come a mort­gage pris­oner," he said.

"You should con­tinue to look for the best home loan deal. Seek the ex­pert as­sis­tance of a mort­gage bro­ker to make sure you are get­ting the best terms pos­si­ble and save money."

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