Christmas is just a few weeks away and we’re all looking forward to a summer break after a very fast-paced year in our property markets. Our last newsletter for 2015 focuses on your goals, financial health and getting ready for another busy year in 2016.

The Reserve Bank of Australia (RBA) met for their final meeting for 2015 last week, but there was no rate cut to give mortgage holders an early Christmas present. The official cash rate remains on hold at 2.0 per cent.

The RBA will not meet again until February 2016, so the cash rate will stay at this level at least until then. The question is, can we expect further rate cuts in 2016? Home value growth looks set to slow down next year and this may give the RBA room to make a further cut. Analysts predict that the sluggish performance of our economy over the last year may prompt a move, but according to RBA Governor Glenn Stevens, this will depend on the economic data.

Sanity appears to be returning to the Sydney and Melbourne property markets, with both showing declines in home values and auction clearance rates during November. This is good news for first home buyers, and for property investors trying to enter the market.

In Sydney, home values fell by 1.37 per cent during November, but were still showing growth of 12.82 per cent over this time last year. Melbourne home values declined by 3.45 per cent, but were up by 11.82 per cent year on year. Canberra was down by 0.50 per cent but showed an increase of 4.52 per cent year on year. Hobart was down by 2.38 per cent, but showed an increase year on year of 1.12 per cent. Adelaide home values rose by 0.69 per cent last month and by 3.27 per cent year on year. Perth home values increased by 0.33 per cent last month but declined by 4.13 per cent year on year. Brisbane and the Gold Coast saw a rise of 0.44 per cent and a rise of 4.45 per cent year on year.

Despite the RBA keeping the official cash rate on hold, interest rates have been on the move in October and November. Lenders have increased rates for property investment loans in line with APRA’s regulations and some lenders have also made slight increases to home loan interest rates for owner occupier home loans.

In this issue, we’ve included an article about getting a home loan health check and if you’ve had your loan for a while, we believe this is really important. We can assess whether your home loan is still the right product for your needs, personal circumstances and goals and shop around to compare your loan to what’s available on the market now to see if we could save you money. If you’re a property investor, we’re also very happy to help you formulate your plans for 2016, so please give us a call today.

We’d like to take this opportunity to wish you and your family a very happy holiday season and a safe and prosperous new year. We look forward to another great year of working together to achieve your financial goals in 2016.

The information provided in this newsletter is general in nature and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs.

We recommend that you seek independent financial and taxation advice before acting on any information in this newsletter, and you consider whether the information is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. Interest rates are subject to change without notice. Lenders terms, conditions, fees & charges apply.

Information sources: Auction results: www.realestate.com.au. Home values:www.corelogic.com.au

Sincerely , Element Finance