There's good news for homebuyers as May gets underway, as the Reserve Bank of Australia (RBA) announces another cut to the official cash rate. At its meeting on 3 May, the body decided that economic conditions called for a further reduction – and there are high hopes that buyers of Carlton property will benefit.
The current 1.75 per cent cash rate might be a historical low, but it will only help property buyers if lenders pass it on to their customers. The last time the rate was lowered – in May 2015 – many mortgage companies took the decision not to share the cut, which the Housing Industry Association (HIA) decided was a mistake.
"We trust that such mistakes will not be repeated on this occasion. Housing affordability remains very challenging, and homeowners deserve to receive their fair share of today's rate cut," said HIA senior economist Shane Garrett.
The Reserve Bank of Australia (RBA) cited various reasons for its decision to reduce the official cash rate. Among them was the latest inflationary information, which shows that pressures are currently lower than anticipated.
RBA governor Glenn Stevens also explained that lower rates have helped the economy so far, and there are high hopes this will continue now they've been lowered even further. Although rebalancing is starting to take place, the economy appears to need a helping hand, which is something the cash rate can help to achieve.
There's no guarantee the cash rate will stay low, so what are you waiting for? Now could be the ideal time to approach a mortgage lender and secure Carlton property, especially with the potential for there to be some really competitive products available.