March 1st 2016

The RBA leaves rates on hold – who cares and what does it mean to you?

Investor lending slowsAs discussed previously, the RBA decision on rates will have very little impact on the Bank’s interest rate movements. Owner-Occupiers will continue to be rewarded for pulling out their loan statements, checking the interest rate they are on (apparently 80% of borrowers aren’t sure!) and spending time seeking out the best rate and structure for their circumstances. The graph below shows the APRA’s direction for the banks to reduce the growth of investor lending to below 10% per annum has already had an impact. So right now is a great time for owner-occupiers as banks rush for market share and the non-banks have again taken the opportunity to grab their share by just pipping the banks on rates. The banks also now have a very good case for easing investor lending criteria over the coming months and rest assured they will soon be lobbying the regulator if they haven’t already done so. Property investors have been punished in recent times with higher interest rates but relief may be in sight! We should never overlook that interest rates are at generational all-time lows. 

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