Steady cash rate: spring savings

THE month’s decision by the Reserve Bank of Australia to hold the cash rate steady at 3.5 per cent comes as no surprise, says Mortgage Choice.

Picture: Kieran Salsone

WITH the Australian economy holding up relatively well in the face of global economic weakness and the continuing problems in the Eurozone, this month's decision by the Reserve Bank of Australia to hold the cash rate steady at 3.5 per cent comes as no surprise, says Australia's largest independently-operated mortgage broker, Mortgage Choice.

Buyers shouldn't let the cash rate decision dampen their spirits as there are plenty of positives in the property and home loan markets right now, suggests Mortgage Choice spokesperson Belinda Williamson.

"With spring here, and the weather well and truly warming up, it is likely that the property market will start to heat up, too. In general, we find that good weather helps drive positive property market sentiment, and we are certainly seeing signs of this already," Ms Williamson said.

"For those selling, positive sentiment translates to positive sales.

"And for those buying, they won't miss out, with even more properties to choose from.

"Buyers and borrowers alike will also benefit from knowing lenders' interest rates remain at historically low levels, and some have recently been adjusting their interest rates in favour of borrowers.

"It would appear the home loan market is shaping up for Spring the way borrowers would like it to."

Ms Williamson said there were many ways borrowers can make savings to help repay their home loan sooner.

"There are a number of ways to make savings that don't rely on an interest rate cut but can be just as effective if the dollars are put towards your home loan repayments," she said.

"You can get as creative as you like in the name of making a saving."

"One of the easiest and most effective ways to keep your spending in check and to grow your savings is by setting a budget.

Originally published as Steady cash rate: spring savings