Understanding how interest rates are affected by the national financial climate can help buyers choose the perfect opportunity to take out a low doc home loan. The latest decision from the Reserve Bank of Australia (RBA) to retain the nation’s official cash rate at the historically low level of 2.5 per cent highlights a good time for those considering moving into the market.
RBA Governor Glenn Stevens said the growth rate of Australia’s economy under the low cash rate has been satisfactory, with a number of industries experiencing large degrees of investment and increasing strength – including the housing construction sector. Therefore, the decision to keep the cash rate at the same level will help sustain these levels of growth and offer people the opportunity to take advantage.
This move was supported by the Housing Industry Association, with Senior Economist Shane Garrett stating the expectation that interest rates will remain low for an extended period of time.
“Over the past year, record low interest rates have breathed life into sectors of the economy that had previously been on the ropes. The current climate of low rates offers the strongest hope that residential construction can continue to put the economy back on track,” said Mr Garrett in an August 5 statement.
With interest rates expected to remain low for another month, now could be just the right time to move into the property market and secure a slice of Australian real estate. Get in contact with the experts at Redrock today to begin discussing the mortgage options available to you. Regardless of whether you’re interested in a low doc home loan or a bad credit option, their insight can help you achieve your property goals.