What does the RBA cut mean for you?
The Reserve Bank of Australia has slashed the official cash rate by 25 basis points to 1.5 per cent today at their monthly meeting, following on from the last rate cut in May.
The 1.5 per cent rate sets a new record low which is in response to the slow global economy and weak inflation data.
Coronis Sales Director Craig Gillies said the rate cut timing was ideal for sellers leading into Spring.
“Today’s announcement will enable more people to enter the property market as buyers have never before had access to such low interest rates,” Mr Gillies said. “The cost of borrowing money for a home loan is the cheapest it has ever been.
“So heading into Spring, I think we can expect to see an increase in the number of buyers actively looking to purchase a new property which is encouraging news for anyone looking to sell.”
Coronis Mortgage and Finance Director Tyson James said the majority of lenders were yet to announce if they would pass on the full 25 basis point reduction to their customers however the Commonwealth Bank has already reduced their Standard Variable Rate by 13 basis points.
“I think it is likely that we will see the majority of them pass a rate cut on, although maybe not the full 25 basis points,” Mr James said.
“In saying that, now is the time for homeowners and investors to review their home loan packages and assess whether they are getting the best deal for their needs while first home buyers have more choice than ever in regards to lender, rate and package options.”
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