RBA Holds Cash Rate, But Homeowners Can Engineer Their Own Rate Cut
The Reserve Bank of Australia (RBA) has held the cash rate at 4.35% for the second meeting in a row, following three consecutive hikes earlier this year.
The decision to pause was influenced by 'sticky' inflation remaining above the RBA's target range and economic uncertainty due to the war in the Middle East.
Despite the wait-and-see approach from the RBA, homeowners may be able to negotiate a lower interest rate with their lender.
CANSTAR Research found that almost 50 lenders now offer variable rates below 6% p.a., and competition in the home loan market is intensifying.
As a result, borrowers who have been paying off their mortgage for some time may be able to 'manufacture' their own rate cut by negotiating with their lender or switching to a better deal.