RBA

Mortgage holders are being tempted to refinance their loans as the RBA keeps rates on hold for another month.

The Federal Government wants to raise awareness and reboot its reverse mortgages scheme that allows retirees to unlock the equity in their homes to help fund their retirement while remaining in their home.

The RBA has kept the official cash rate at just 0.1 per cent for another month as forecasters continue to suggest that’s where they’ll stay for another year or two.

The national inflation figures came out yesterday and were slightly lower than expected with the consumer price index rising 0.6 per cent over the three months to March.

The RBA has left interest rates unchanged this month but says it is keeping close watch on the booming housing market.

Reserve Bank governor Philip Lowe has his eye on the current property boom around the country and isn’t ruling out intervening to take the heat out.

The rapidly escalating housing boom hasn’t stopped the RBA from keeping the official cash rate on hold for another month.

Interest rates are set to stay at the record-low 0.1 per cent for possibly another four-to-five years.

Former Reserve Bank governor Bernie Fraser is leading a new push to look at letting low-income earners and first homebuyers dip into their super to buy a home.

Smaller lenders have been quick to immediately pass on the RBA’s interest rate cut to customers but the big four weren’t so trigger-happy.