Don Crellin Managing Director of ABN Group’s award-winning mortgage broking firm Resolve Finance, welcomed yesterday’s (June 4, 2019) decision by the Reserve Bank Board to reduce the official cash rate by 0.25 basis points to 1.25 per cent, the first of at least two expected cuts this year.
“With the major banks passing on these cuts, albeit at varying levels, and the APRA moving to scrap the 7 per cent qualification buffer on residential home loan assessments, the timing is ideal for home buyers to qualify for a loan,” Mr Crellin said.
“It remains important for the borrower to factor in future changes to the interest rate and ideally work with a broker to navigate best options.
“But for those in the position to buy a home – now is a good time. There’s no doubt that we’ll also expect to see this positively impact current homeowners looking forward over the next few years.”
ABN Group Managing Director Dale Alcock agreed with Mr Crellin’s sentiment.
“This rate cut is a very positive sign for prospective home buyers who can feel confidence in entering the housing market,” says Mr Alcock.
“These lending conditions will significantly increase the borrowing capacity of home buyers who are in the position to purchase a home,” Mr Alcock said.
“It will give home buyers the much-needed break that they have been waiting for to leap into the housing market at a very competitive time.
“Many more Australians who have been ready to buy a new home, will now be able to secure the dream of home ownership,” Mr Alcock said.
June 5, 2019