Following yesterday's official interest rate cut by the Reserve Bank we have today started to see some of our lenders pass on the rate reduction.
One of our panel lenders has cut their 5 year Fixed rate to 4.69% which looks extremely attractive for property Investors in particular. Interestingly other lenders reduced their variable rates but have left their fixed rates unchanged which now sees them well outside the market.
By the end of the week we will potentially see variable rates in the 4.30/4.40% range. This increases household affordability levels which can only be good thing.
Whilst home loan clients rejoice, I feel for our retirees and pre retirees who will now struggle to obtain deposit interest rates above inflation. We have seen a strong surge on the Australian Stock Exchange this week which would be in part due to investors seeking greater returns via dividends than their traditional savings and term deposit accounts.
Further rate cuts to follow? Our economy remains patchy, particularly in the business and mining sectors so another cut in 2015 is on the cards.
Please give me call to ascertain whether your current lender has passed on the full rate cut on 0428 434 084.