The RBA has opted to leave the official cash rate on hold at 1.5%
The month of August saw a flurry of activity from banks, with differing levels of rate cuts in response to the RBA’s decision to lower the official cash rate. This led to the media and consumers asking why the rate cut was not passed on in full with the response from lenders generally being that the RBA cash rate is only one of a number of components that make up their funding mix. Understanding interest rates in combination with the structure and fees of a home loan are an important part of financial literacy for those looking to own their first home, upgrade to a larger home or even downsize into a smaller investment.
When researching your home loan options, be sure to look at all aspects of a product and lender. The interest rate is only the tip of the iceberg when it comes to a home loan and we can help you understand the finance for your home and compare different products from different lenders.
Any advice contained in this article is of a general nature only and does not take into account the objectives, financial situation or needs of any particular person. Therefore, before making any decision, you should consider the appropriateness of the advice with regard to those matters. Information in this article is correct as of the date of publication and is subject to change.