Reserve Bank of Australia cuts the official cash rate

This latest rate cut – the first in 18 months – means the official cash rate is now sitting at a historic low of 2.25 per cent. Of course, with the Reserve Bank deciding to cut the cash rate, the question on everyone’s lips is whether the banks will follow suit and trim the interest on their suite of home loan products?

Given how competitive the mortgage market currently is and how hard Australia’s lenders are working to win business, the answer is likely to be yes. That said, whether or not all of the lenders decide to pass on the full rate cut or just part of it will remain to be seen. Some have already made the move.
 

Regardless of how much Australia’s lenders do cut their mortgage rates by, one thing is certain is that the cost of borrowing is before more affordable than ever before. 

If you have a mortgage that you haven’t reviewed in a while, it is a good idea to give it a home loan health check. You may find there is a more competitive deal on the market that is better suited to your needs.

Of course, before switching it is important to take the time to compare all aspects of the loan from the rate to the fees and features to make sure you are getting a loan that is truly suited to your needs.

Alternatively, now could be the best time for you to purchase an investment property or get your foot onto the property ladder. 

At Mortgage Choice Sutherland - Sylvania we are here to assist you in understanding your options and to find the right loan to meet your needs. Contact Jim on 0437 330 858.

Posted in: Interest rates

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