Existing and potential property owners will be elated to hear the cash rate is on hold for a second month, as they reassess their budget for the new financial year. It means lenders will be much less likely to move mortgage interest rates up as winter takes hold.

Mortgage Choice senior corporate affairs manager Kristy Sheppard said, “A ‘wait and see’ approach from the RBA is what borrowers need at the moment. Interest rates stood at an emergency setting over much of 2009, but they rose very quickly from then on and caught many people unaware.”

“We have not yet seen the full effect of the six official rate rises from October to May, or the effect of further mortgage rate increases by a number of lenders.

“Although employment is solid, our resource sector is strong and many property markets are moving at a healthy pace, consumer spending is subdued and sentiment has dropped, just as housing finance demand has over several consecutive months now. We?re also seeing a slowing of housing prices and global economic uncertainty continuing.

“Slowed housing finance demand and prices is a good thing, however, for those looking to enter the market. Less competition means many regions have become buyers’ markets. Anyone with a healthy deposit or equity, a steady income, few debts, a good credit record and solid employment, may find they are well placed to build upon their financial portfolio now by buying property.

“Greater credit should also be given to Australian mortgage holders, the majority of whom are coping well with ten-year average standard variable interest rates. Our 30-day arrears rate for prime mortgages rose slightly during the March quarter, but reached only 1.34%*, well below delinquency rates experienced throughout Europe, the UK and the US.

“Clever borrowers used the relief of decades-low rates over late 2008 and most of 2009 to get ahead with their repayments and prepare for changes to rates and their financial situation. Many continue to do so. Our 2010 Recent First Homeowners Survey found 64% of respondents were making extra repayments, with the majority contributing as much as possible. This not only helps a borrower create a financial buffer, it shaves time off their loan term and off the overall interest owed.

“Still, we hope the RBA keeps the cash rate on hold for at least another quarter or until we see an upturn in consumer and business sentiment, spending and confidence. Another tap on the brakes may have a heavier effect than expected.”

Call the customer service centre on 13 MORTGAGE, visit www.mortgagechoice.com.au

or www.facebook.com/MortgageChoice orhttp://twitter.com/MortgageChoice.

*Moody’s Investors Service Delinquencies report Q1 2010

Importantly, Group Office pays franchisees the same commission rate for home loans they write, regardless of the rate paid by the lender selected by a new customer. It has done so for most of its 18-year history. The company has no products of its own, working in each customer’s interests to source a solution that suits their individual needs.

Mortgage Choice has no balance sheet or funding risk, and consistently delivers strong profits and attractive yields. It listed on the ASX in 2004 (sign: MOC) and is a member of the Mortgage & Finance Association of Australia (MFAA).

Recent recognition: 2010, 2009, 2008, 2006 and 2005 MFAA Awards Retail Aggregator/Originator of the Year; 2010, 2009 and 2008 10 Thousand FEET Top 10 Franchise list; 2009 and 2008 BRW Fast Franchises list; No.1 on 2009 Top 25 Brokerages list by Mortgage Business magazine; 2009 Australian Banking & Finance Awards Best Financial Institution Employer; 2009 Great Place to Work® Institute Best Companies to Work For list; 2008 MFAA Awards Best In Mortgage & Finance Industry.

Visit www.mortgagechoice.com.au

or call customer service on 13 MORTGAGE.