Interest rates remain unchanged
Official interest rates have been kept on hold at 4.75 per cent for August by the Reserve Bank. This leaves variable home loan rates steady too at 5.8 to 6.57 per cent, depending on the lender. For the average 25-year home loan of $179,000 at 6.5 per cent, this means repayments will stay at about $1,215 a month.
Since June 2002, when interest rates last changed, the average mortgage loan has increased by over $22,000 and the average capital city house price has increased by almost 20 per cent. Home ownership affordability is now at its lowest level for 13 years.
Read Ratewatch for a full rates outlook and why they have been kept on hold