Interest Rates and Property Decisions

Interest rates and property decisions

Interest rates can affect the cost of borrowing and the choices available to buyers and sellers. The Reserve Bank sets the Official Cash Rate as one tool of monetary policy. Banks set their own lending rates and terms, which may change at different times and for different customers.

If you are buying, ask your lender or mortgage adviser how the current rate, any fixed-rate expiry, deposit, fees and loan conditions affect your budget. If you are selling, consider how your own finance and timing fit your plans. A change in the OCR does not predict what a particular property will sell for or guarantee a change in local buyer demand.

Before making a decision, get advice based on your circumstances from your lender or qualified financial adviser. Check the Reserve Bank’s current OCR information and decision dates directly, because rates and forecasts can change. Ray White Richmond can discuss current listings, recent sales and sale methods, but cannot give personal financial advice.