NSW government has just announced the move to overhaul stamp duty and replace it with a $25,000 grant for first home buyers. This would initially allow buyers to choose paying stamp duty or an annual levy.
A week out from the release of the federal budget, the RBA has announced they would be holding the record low cash rate of 0.10% as well as the yield on the 3-year Australian Government bond.
A statement by Governor Philip Lowe “The global economy is continuing to recover from the pandemic and the outlook is for strong growth in 2021 and 2022.” Although the economic recovery remains uneven as some countries are yet to contain the virus, we are starting to see a positive turn for global trades, as commodity prices are mostly higher than at the start of the year.
As record low borrowing costs will continue to drive strong buyer demand and housing price growth, Governor Lowe said the Bank will be monitoring trends in home loan borrowing carefully, to ensure lending standards are being maintained.
Mr. Lowe repeated that we will not see a cash rate increase until the actual inflation is sustainably within its 2-3% target range – which he doesn’t expect to be met until 2024 at the earliest.
REA economist says the announcement of cash rate holds not rising until at least 2024 gives borrowers certainty that mortgage rates will stay low for several years, driving hesitant buyers to make the move now.
If you would like to take advantage of the current interest rates, through refinancing, purchasing or renovating, please feel free to get in touch with us to discuss!