The Reserve Bank of Australia has progressively reduced interest rates by over 1% since May 2019, with the last scheduled cut on the 4th March 2020 and a special 0.25% reduction as an Emergency Cut on the 19th March 2020 to support Government efforts in economic stimulus against the impact of COVID-19. The official rate is now just 0.25%, the lowest Australia has ever experienced.
One questions the merit of the recent cut as it was more a reaction to the potential economic impact of the Coronavirus. It now leaves the Reserve Bank with limited further capacity to provide additional economic influence if necessary.
It is of course welcome to any borrower but it is tragic for anyone reliant on interest on their savings to live. So as with all things, unintended consequences occur.
Of better news than the rate cut itself is the fact that lending approvals are becoming slightly easier with a softening of servicing guidelines for many lenders. This is especially true in the competitive owner occupier market.
For foreigners and expatriates we are pleased to say we have options available, including some welcome changes to servicing and assessment. Foreigners maximum lending to 75% and for expats to 80%.
Our professional team at Specialist Mortgage are highly skilled at finding the best lending options for you, so make sure you take full advantage of their abilities to access new lending and review your current loans.
Email finance@smats.net to connect with one of our lending team.
