Property Market Boom!

The RBA is keeping interest rates at the historically low of 0.1%, noting that the housing market has strengthened.  Growth to owner occupiers had picked up, and strong demand from first home buyers.  Research from CoreLogic showed that home prices soared at the fastest rate in 32 years in March.

The bank will continue to monitor trends in housing borrowing and maintain lending standards, clamping down on risky lending if the market overheats.

When applying for a home loan, banks factor in a 2.5 % buffer on the ongoing rate.