Interest rates on hold

In welcome news for borrowers, the Reserve Bank has decided to keep rates on hold at 4.75 per cent.

The move comes on the back of recent figures showing Australia’s housing market remains soft, and the number of jobs advertised has fallen.

“This is great news for mortgage holders,” says Domain.com.au property expert Carolyn Boyd. “With the new financial year rolling around, many householders are facing increases in other expenses such as power and gas, and the last thing they need at the moment is to have to pay more interest.”

Those who can afford to do so though, should always pay more off their mortgage, Boyd says, as it provides a buffer against further rate rises, and can help to free households of mortgage debt sooner.

Each 0.25 per cent interest rate rise adds another $60 to the monthly cost of an average Australian mortgage.

The official interest rate is now 4.75 per cent. Mortgage holders on variable interest rates are being charged a standard variable rate of about 7.83 per cent by their lenders.

The above report courtesy of Domain.com.au.

Graham Lynham