Interest Rates May Come Down Next

The six increases applied by the Reserve Bank of Australia (RBA) since October last year, which lifted the cash rate to its current level of 4.5 per cent, have successfully slowed economic activity.

What this means for borrowers, is that interest rates should stay on hold for the time being and the next movement by the RBA could even be a rate reduction.

In fact, for the first time in over a year there's a significant chance now that the next interest rate move will be downwards.

Mortgage holders should be looking to pay more off their loans and other debts while rates stay on hold.

Start to move it from high interest bearing debt like credit cards and put it onto your mortgages and hopefully pay that debt down as fast as possible.

The property and home finance markets appear stable and Australia is not in danger of being impacted by the price bubble which occurred in the United States and other overseas markets.

One of the big things to prove that we're not in a housing bubble is the fact the banks have been a lot tougher with lending money over the last couple of years than a lot of their counterparts around the rest of the world.

What this means is that we haven't seen a lot of people buying houses that shouldn't have been able to.

And while the criteria to secure a home loan has certainly changed over the past few years, if you can prove that you can service a home loan, there are generally options available.