Monday 16 March 2020
What should I do next? If you’re in the process of considering a new build, speak to your broker about how the recent stimulus measures could help you.
Bank saving rates slashed following RBA rate cut
Australia’s big four banks were applauded for passing on the Reserve Bank’s recent official cash rate cut in-full to borrowers. Unfortunately, that action is translating into pain for other customers – particularly savers.
CBA, for example, has cut interest rates on savings accounts by as much as 0.3 per cent. When you consider that CBA is Australia’s biggest home lender, and so has the most to lose by passing on the full 0.25 per cent RBA cut to borrowers, it stands to reason the bank would look for ways to recoup. If you’re a CBA customer trying to save for a deposit though, the job just got harder.
What should I do next? Look into what you’re earning in interest on your savings account, and consider your options.
Home borrowing increases in January
The value of new home loan signings increased by more than 5 per cent in January, according to the Reserve Bank. Investor loans dropped 0.3 per cent over the same period. The increase is thanks to a combination of more people entering the market, and borrowing more.
Given continuing auction clearance rate improvements in most capital city markets, despite increases in available stock, this is another sign that the Sydney property market is continuing to rise. It is worth noting however, that while existing housing prices are escalating, the cost of house and land packages in Sydney has remained relatively static.
What should I do next? Compare existing housing prices with the cost of house and land packages.