The decision by the Reserve Bank of Australia (RBA) to keep the nation’s cash rate on hold this month may have come as a relief to Australia’s first home buyers and other owner occupiers. But with the possibility that rate could rise again before the year’s end, and with no rate cuts expected until mid to late 2024, it’s important for borrowers to carefully consider their mortgage options before making an application, to make sure it suits their finances.
While three of Australia’s Big Four banks believe that the cash rate has already peaked, NAB is still predicting that the RBA will hike the cash rate one more time this year in November 2023, following the release of quarterly inflation figures at the end of October 2023, which may be driven upwards by higher petrol prices.
Looking further ahead, the first rate cuts could be made as soon as May 2024, or perhaps later in that year. This could potentially provide some relief for borrowers in mortgage stress.
Whether you already own your home or are buying your first property, it’s important to compare home loans from across the market to make sure your mortgage suits your financial situation and personal goals. To help simplify this process, you can look at our Home Loan Leaderboards, which rank mortgage deals in different categories by their Real Time Ratings™. These scores out of five are generated based on a loan’s cost and flexibility and are updated daily to ensure they more accurately reflect each loan’s overall value.