Decision means 19 months without an interest rate rise

THE Reserve Bank of Australia (RBA) staying on the sidelines and prospects of relaxed lending standards from the national banking watchdog mean continued favourable conditions for home loan customers, says mortgage broker network 1300HomeLoan.

1300HomeLoan managing director John Kolenda said official interest rates have remained at 1.5 per cent since August, 2016, and most forecasters expect the cash rate to stay at the present level for the rest of 2018.

"We have now gone 19 months without any change from the RBA and the current governor of the central bank, Philip Lowe, hasn’t moved the cash rate since he took on the job in September, 2016," Mr Kolenda said.

"The RBA’s inaction has provided much needed stability for mortgage holders."

Mr Kolenda said comments from the Australian Prudential Regulation Authority (APRA) chairman Wayne Byres indicating the 10 per cent cap on growth in bank lending to housing investors could be lifted was more good news for mortgage holders.

"The removal of the cap could put downward pressure on mortgage rates for investors and increase competition among lenders," he said.

"Home loan customers will be costing themselves thousands of dollars by being complacent and not taking advantage to seek the best deal they can get on their mortgage in the current environment.

"It’s pertinent for home owners to seek expert advice from a mortgage broker to secure the best interest rate possible and save money."