The RBA slashes the cash rate to 1.25% – It’s time to celebrate! This is the news we’ve been waiting for and as many predicted, today the Reserve Bank of Australia made history by reducing the official cash rate by 25 basis points to a record low of 1.25%.
Prior to today’s cut, the cash rate had remained at 1.5% since August 2016. Today’s decision is great news for home owners and the property market. If Lenders pass on the rate cuts, lower interest rates mean lower home loan repayments for borrowers with a variable loan and could result in a boost for the property market. According to the latest Core Logic Home Value figures, national Australian property values fell 0.4% in April and 7.3% annually.
Lenders may pass on all or part of the 0.25% rate cut to their variable rate home loan customers, but there are no guarantees. The last time the RBA cut the official cash rate, few lenders actually passed on the full rate reduction to borrowers. Below is a list of Lenders who have already announced a rate reduction since the RBA decision, we will updated this list as each Lender advises on their position
- AMP – full rate reduction of 0.25%
- ANZ – partial rate reduction of 0.18%
- Auswide – full rate reduction of 0.25%
- Bankwest – full rate reduction of 0.25%
- Citibank – full rate reduction of 0.25%
- Commonwealth Bank – full rate reduction of 0.25%
- Firstmac – partial rate reduction 0.20%
- ING – full rate reduction of 0.25%
- Macquarie – full rate reduction of 0.25%
- ME Bank – full rate reduction of 0.25%
- NAB – full rate reduction of 0.25%
- Newcastle Permanent – full rate reduction of 0.25%
- Plan Lending – full rate reduction of 0.25%
- RAMS – partial rate reduction of 0.20%
- St George- partial rate reduction of 0.20%
- Suncorp- partial rate reduction of 0.20%
- Virgin Money – partial rate reduction of 0.22%
- Westpac – partial rate reduction 0.20%
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.
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