The RBA leaves interest rate unchanged at 1.50 per cent at its March 2019 meeting.
It has been two and a half years (August 2016) since the RBA last made a monetary policy adjustment.
“The growth outlook is being supported by rising business investment, higher levels of spending on public infrastructure and increased employment,” governor Philip Lowe said in his monetary policy decision statement.
What does this mean for securing a mortgage?
Investors looking to secure finance in all of this discussion about rate cuts will find things difficult within the context of the current environment, according to Mr Kolenda.
“A rate cut seems inevitable with so many negative factors weighing down economic activity such as the falling property market, the impact of the Hayne royal commission, concerns about unemployment, the election, the US/China trade war and the Brexit debacle,” he said.
If the potential cuts do happen, Mr Kolenda recommend existing mortgage holders to immediately review their options to see if they can find better deals.
“With the recent tightening of credit policy, I would strongly recommend they see a mortgage broker as many consumers might find themselves caught with their existing lender because their borrowing capacity has reduced dramatically,” he said to Smart Property Investment.
“Without seeking broker assistance, they might not be able to refinance to a better rate.”
