Cash Rate Cut To A Record Low 1.5%
Today the Reserve Bank of Australia announced they will be cutting the official cash rate by 25 basis points to a new historic low of 1.5 per cent.
If lenders pass on the full discount of 0.25%, borrowers who currently have an average 30 year variable home loan of 4.50% would look at saving almost $90 per month on a $600,000 principal & interest home loan.
With the peak selling season for Australian property just one month away, lower rates are expected to motivate buyers even further. The past three months have seen solid growth in the combined capital city dwelling prices and today’s announcement will boost listings ahead of the spring selling season.
As we have seen with past rate cuts, not all lenders will pass on the full 0.25%. Some lenders may also choose to wait several weeks before passing on any cuts. Borrowers are advised to wait at least one month for their lender to pass on the rate cut. If there has been no cut or only a percentage of the cut passed on by your lender after this time, we can do a free home loan comparison for you to see which lenders may be able to offer you a better home loan solution.