Upbeat consumers are the key to an economic turnaround: John Kolenda

As Christmas fast approaches, it will be great to see some signs of growing consumer confidence and Australians breaking the spending shackles for the festive season.

Recently there have been some positive signs for the economy and a push by the federal government for banks to relax lending standards for small business.

With official interest rates below one per cent for the first time in our history, the RBA can take a well-earned summer holiday as the rate cuts it has delivered this year have made an important contribution to boosting consumer confidence.

Having upbeat consumers is the key to an economic turnaround and the domestic economy is still showing signs of improvement. It is good to see the government talking to the banks about the way they have been applying the responsible lending guidelines to small and medium-sized enterprises. By supporting more lending and our SMEs we should see positive signs of further economic improvement.

In this environment there is no real need for the RBA to do much more until they get a better view of the economy in the first quarter of next year.

In the lead up to the summer break, I again urge mortgage holders to regularly review their home loans to ensure they are getting the best possible deal. Mortgage holders should never be complacent about their home loan. With interest rates at record lows, lenders are willing to battle for your business. Contact a mortgage broker to make sure you are getting the best terms and, most importantly, saving money.

John Kolenda is the chief executive of mortgage broking giant Finsure and is the top shareholder in the listed real estate group The Agency.