The decision today by the central bank to leave official interest rates unchanged was a welcome reprieve for home owners experiencing mortgage stress, Wizard Homes Loans chairman Mark Bouris says.

“Without being melodramatic, today’s rate reprieve will mean many of these people can continue to keep their heads above water,” he said in a statement.

The Reserve Bank of Australia (RBA) board met today and left the cash rate at 7.25 per cent.

The decision was widely expected and but the RBA’s statement accompanying its decision continued to warn that inflation was likely to remain high in the short term.

Some economists think the RBA could lift rates again later this year, building on its last rate hike in March.

Mr Bouris said he had no doubt that a rate rise today would have been the final nail in the coffin for many home owners already struggling with high fuel costs.

“The temporary relief being provided by the RBA not increasing the official rate today is well and truly appreciated,” he said.

“And while it is a difficult task for the RBA to adhere to their mandate to control inflation, it’s equally important that at the same time they tread cautiously by not breaking the backs of the mortgage holders.

“Thankfully though, the RBA has recognised this and not used the lever of interest rates to wield further financial stress across the country.”

Meanwhile, Australias largest privately-owned debt collection agency, Prushka, said borrowers should use this opportunity to reduce their personal debt levels.

“Households need to be making concerted efforts to reduce their spending and pay off debt as quickly as possible,” chief executive Roger Mendelson said.

He said living costs were continuing to rise, which was likely to put further stress on householders.

“Mortgage stress among Australian borrowers is already severe, with delinquency rates hitting their highest level in more than a decade - stress among borrowers with low documentation loans is even more dramatic,” Mr Mendelson said.

But home loan broker Mortgage Choice said the steady rates decision could provide an opportunity for those looking to enter the property market by buying an investment property, before purchasing a home.

“The rental vacancy market remains historically tight, averaging 1.6 per cent nationwide and with net migration at a 20-year high, the outlook for residential investors who rent out property is positive,” Mortgage Choice national manager of corporate affairs Warren O’Rourke said.

He said buying an investment property, before buying a home, can be a canny option.

“A clever purchase and a little patience could see these homebuyers-to-be residing in their desired suburb sooner than they think,” he said.

AAP