RBA Governor Glenn Stevens says the slowing property market is good for the Aussie economy
In his annual interview with the Australian Financial Review, RBA Governor Glenn Stevens has described the slowing Sydney and Melbourne property markets as a needed and welcome change.
Stevens said that RBA data suggests that the fire has come out of the housing market in Sydney and Melbourne, especially the former, promising lowered prices for Australian buyers.
He said of the change, “I think it had to happen. The pace of growth that we had – you can't keep going at that pace without new stimulus coming into the market from somewhere because the affordability levels just get out of reach for people unless we keep cutting interests rates, which we're not doing right at the moment, obviously.”
A slowdown in the market was inevitable, “unless you keep getting new buyers from offshore or financial things that allow people to gear up more” - the latter including a lowered cash rate.
This month the RBA kept the official cash rate steady at 2% for the holiday season, which was good news for those with home loans. Stevens said the cash rate would be lowered again ‘if that’s helpful’ but stressed that he didn’t think it would be a desirable thing for the property market if it did.
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He declined to comment on the direction the market might take in the future, saying "I can't make a forecast of that. I do think, though, that a market where we're not getting panicked buying, where people have time to just think about what's a reasonable price and what isn't and where they take some care with their financial structure and where the lenders are taking a bit more care with standards, I think that's a better world than the one we were in."
If you’re looking to take advantage of cooling prices in the property market, compare some of the best mortgage deals with Mozo’s home loan comparison tool.
Home loan comparisons on Mozo - last updated 23 April 2024
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Featured Product
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Unloan Variable
Owner Occupier, LVR <80%
interest rate
comparison rate
Initial monthly repayment5.99% p.a. variable5.90% p.a.Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
CompareCompareUnloan Variable
Built by CommBank, the Unloan is the first home loan with an increasing discount (conditions apply) for borrowers. No application or banking fees. No monthly account keeping or early exit fees. Apply online in minutes.
- interest rate
- 5.99% p.a. variable
- comparison rate
- 5.90% p.a.
- interest rate
- 5.99% p.a. variable
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- 5.90% p.a.
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- $0
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- $10,000
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- Variable
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Express Home Loan
Owner Occupier, Principal & Interest, LVR <90%
interest rate
comparison rate
Initial monthly repayment6.01% p.a. variable6.14% p.a.Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
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Get fast online approval from the award-winning Bendigo Bank Express Home Loan. Multiple offset accounts and redraw available. 100% offset on variable rate loans and partial offset on fixed rate. Flexible repayment options. New home loans only.
- interest rate
- 6.01% p.a. variable
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- 6.14% p.a.
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- 6.01% p.a. variable
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- 6.14% p.a.
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- $10.00 monthly
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Read our Mozo Review to learn more about the Bendigo Bank Express Home Loan
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Flex Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR <60%
interest rate
comparison rate
Initial monthly repayment5.99% p.a.
fixed 3 years6.37% p.a.Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
CompareCompareFlex Home Loan
Competitive Fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
- interest rate
- 5.99% p.a.
fixed 3 years
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- 6.37% p.a.
- interest rate
- 5.99% p.a.
fixed 3 years
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- 6.37% p.a.
- Upfront fees
- $250
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- $250.00 yearly
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- 60.00%
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- Fixed
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Read our Mozo Review to learn more about the ubank Flex Home Loan
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Discounted Home Value Loan
Owner Occupier, Principal & Interest, LVR 70-80%
interest rate
comparison rate
Initial monthly repayment6.09% p.a. variable6.09% p.a.Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).
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Enjoy competitive rates for owner occupiers. Enjoy unlimited free extra repayments. Flexibility to redraw additional payments for free. No ongoing monthly service fee. Settlement fee waived on new borrowings from $50,000 (T&Cs apply).
- interest rate
- 6.09% p.a. variable
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- 6.09% p.a.
- interest rate
- 6.09% p.a. variable
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- 6.09% p.a.
- Upfront fees
- $0
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- $0.00
- Discharge Fee
- $300.00
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- yes - free
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- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
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- -
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Neat Home Loan
Owner Occupier, Principal & Interest, LVR <60%
interest rate
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Initial monthly repayment6.14% p.a. variable6.16% p.a.Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
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Competitively-priced variable rate loan. Ideal for owner occupiers and investors. No service fees to pay. Make free extra repayments and redraws. Flexible repayment schedule available.
- interest rate
- 6.14% p.a. variable
- comparison rate
- 6.16% p.a.
- interest rate
- 6.14% p.a. variable
- comparison rate
- 6.16% p.a.
- Upfront fees
- $250
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
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- yes - free
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- Offset account
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- Maximum loan to value ratio
- 60.00%
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- $80,000
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- $5,000,000
- type of mortgage
- Variable
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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