Perth, WA - The Reserve Bank of Australia (RBA) seeks to foster financial stability and is responsible for making monetary policy decisions. The board is expected to keep the cash rate unchanged at 2.5% when it meets this week.

This would mark the 15th month that rates have remained at record lows.

Rates have remained low for more than a year, giving many the opportunity to pay off their mortgages much sooner rather than later. The news is certainly welcome but experts also caution about new homebuyers overextending their budgets and paying more than they can afford.

Paul Sonntag, managing director of Aquus Property Group, has said that those new to the market need to be wary before making any decisions. Even with rates at record lows, rushing into the property market without proper due diligence is incredibly risky and could mean paying much more as a result.

Rates are at the lowest they have ever been but this is certainly not an invitation to rush into a decision. The RBA has also cautioned in its Financial Stability report that housing prices across capital cities could start to drop. The RBA has yet to implement any measures to curb the rapid growth in the housing market but may consider passing new restrictions for investment properties.

Banks have become increasingly strict with their lending policies.

New research shows that the number of low-deposit loans has decreased by more than 5% just in the last year. These types of loans account for 69% of the Australian market which is down from 73% in 2013. The data from the study reflects a much more risk-adverse approach from lenders.

Financial experts do not expect rates to rise until later next year.

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