Interest Rate Reductions – On Tuesday 3rd November, the Reserve Bank of Australia announced a reduction to the Australian cash rate of 0.15% bringing the new cash rate to a record low of 0.10%.

Philip Lowe, Governor of the RBA said “the Board decided on a package of further measures to support job creation and the recovery of the Australian economy from the pandemic”. Dr Lowe said the cash rate was very unlikely to drop below zero because it would not help stimulate spending. The rate is expected to remain at 0.10%  and the RBA confirmed they will not increase the cash rate until inflation is sustainably within the 2% – 3% target range which they anticipate will take at least three years.

RBA recommends home owners shop around for better rates

After the announcement on Tuesday, Lowe told homeowners to shop around if their bank doesn’t follow through with interest rate reductions. “The best outcome would be for standard variable rates to be lowered but if that doesn’t occur, I’m confident there will be pass-through occurring through people renegotiating and switching,” Mr Lowe said. “I encourage everybody to go to their bank and ask for a better deal, If they don’t give it to you, switch to a bank that will.”

What is the cash rate?

The Australian cash rate is the benchmark interest rate that financial institutions pay to borrow funds which are then passed onto their customers. The cash rate influences other interest rates in the economy, affecting the behaviour of borrowers and lenders, economic activity and ultimately the rate of inflation.

Australian housing market

This rate reduction comes as Australian housing values move into recovery mode for the first month since the pandemic began. Following five months of consistent declines in residential property values, CoreLogic’s national home value index moved back into positive month-on-month growth through October, posting a 0.4% rise. The lift in home values was broad based, with every capital city apart from Melbourne posting a rise in values over the month.

See which lenders have passed on interest rate reductions

Below is a list of Lenders that we work with and their home loan interest rate changes in response to the cash rate reduction. We will highlight in blue those lenders who are passing on the full 0.15% reduction to their variable rate home loans & will keep this list updated as each Lender responds to the November rate cut.

Get a free home loan comparison today

Now is the time to get in touch with an Assured Lending Mortgage Broker to see how your home loan rate compares to others on the market. It won’t cost you anything to get a home loan comparison but it could save you thousands. Our service is completely cost and obligation free so give us call today for more information on the right home loan for you.

Contact an Assured Lending Mortgage Broker for more information today

Interest Rate reductions November

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.