Latest NewsLenders, Builders Welcome Rba Rates DecisionThursday, 25 August 2016

The Reserve Bank of Australia's (RBA) decision to leave official interest rates on hold will give borrowers more time to maximise the benefits of current low rates, lenders say.

The RBA has maintained official interest rates at a 49-year low of three per cent, amid signs that the global economy is stabilising and that domestic inflation will continue to abate.

Independent mortgage broker Mortgage Choice welcomed the decision, saying it will allow borrowers more time to prepare for an inevitable rise in rates once the economy is back on a growth path.

"People are realising that the time of historically low interest rates is probably coming to a close," Mortgage Choice corporate affairs manager Kristy Sheppard said.

"Whether or not this is the case, we are pleased to see borrowers and potential property buyers using the relative respite in rate movements to thoroughly research their loan options.

"The steady cash rate may very well be a brief interlude before interest rates return to a more neutral level.

"Nevertheless, borrowers or those looking to take out mortgages should assess their loan options while the market is relatively stable."

Resi Mortgage Corporation warned borrowers to consider more than just low rates when searching for lenders.

"Any borrower can find a low rate on the market, but if they don't have easy access to appropriate consumer financial guidance to determine how to best approach and then manage their finances, the savings on that great rate can soon be wasted," Resi's head of consumer advocacy Lisa Montgomery said.

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