RBA rate stays the same but does that dictate what the banks do?
Nope!

This blog will be short and sweet and relative to October 2021!


 


So the RBA announced that it would keep the official Cash Rate unchanged at 0.10% yesterday 5th October 2021 but don't go getting yourself comfortable with your current lifestyle and loan because......


 


The RBA doesn't dictate what the banks do and there are very strong suggestions that APRA (Australian Prudential Regulatory Authority) will impose a 'macroprudential' control which will be aimed at restricting riskier lending in light of the property price increases overtaking wage increases.


 


The ‘macroprudential’ control is a new accessibility process in which new borrowers must meet their loan repayments by at least 3.0 percentage points ABOVE the loan product rate.


 


It will be interesting to see if this measure decreases the property market heat to a slow, more sustainable, burn!