RBA Rates stay low

In the previous meeting, RBA governor Philip Lowe said that the Australian economy is recovering well and there’s been positive news on the employment over the recent months. “In Australia, the economic recovery was well under way and had been stronger than expected previously. There had been strong growth in employment and a welcome decline in the unemployment rate to 6.4 per cent,” Lowe said.

The COVID-19 support measures such as the JobKeeper wage subsidy, HomeBuilder scheme and loan repayment deferrals ended in March but will likely have a minimal overall impact on the housing market according to realestate.com.au chief economist Nerida Conisbee. “We can see that the economy is well on track and the conditions are very strong at the moment,” she said.

The cash rate is the lowest it’s ever been, and it will likely remain at a record low for the foreseeable future. If you’re looking to enter the property market, we can help you find a competitive loan to suit your needs. 

Best Interests Duty (BID)

This new legal requirement is being introduced as a result of the recent Royal Commission into the finance sector.  Its goals are as follows:

  • To improve customer outcomes
  • To ensure brokers act in the best interests of their customers
  • To reduce the potential for conflicts of interest to impact the assistance customers receive from brokers.

BID comes into effect from 1 January 2021 and will be incorporated into brokers processes and procedures from that date.