The Reserve Bank of Australia(RBA) has announced the outcome of the September board meeting, keeping the cash rate on hold at 2.5 per cent.

This is the twelfth time in a row that the RBA has held the record low rate.

Master Builders Financial Services Director, Harry Pontikis, said that despite rates remaining at a record low, banks continued to compete fiercely with each other.

“The competitive rates and deals being offered by banks are further assisting housing affordability,” Mr Pontikis said.

“First home buyers should not be discouraged by talks of a ‘housing price boom’ but should focus their attention on entry level suburbs where price growth has stagnated,” he said.

“Alternatively, blue-chip suburbs are continuing to experience the boom.”

Mr Pontikis said there continued to be opportunity for builders looking to kick-start projects, to capitalise on the good lending conditions.

“Conditions are inducive to borrowing money at the moment with many lenders returning to lending policies not seen since pre-GFC,” Mr Pontikis said.

“With unemployment set to continue rising above 7 per cent in Victoria, and economic growth set to remain at predicted 2.5 per cent, it’s likely rates will continue being on hold for the rest of this year.”

For more information, or to discuss your own situation with a finance specialist, contact Harry Pontikis on 1300 137 539.

This advice is of a general nature and has not taken in to account your individual circumstances.