Borrowers have been given reason to celebrate, with the Reserve Bank of Australia cutting the official cash rate to the new historical low of just 2 per cent, on the 5th of May.
Gold Coast mortgage broker, John Kennedy of Mortgage Choice in Mudgeeraba said Australia’s economic rebalancing has been slow, ultimately encouraged the Reserve Bank to take action and trim the cash rate. The economic data strongly suggests that the first rate cut earlier this failed to have the desired effect, with consumer sentiment falling sharply in April.
With the Federal Budget set to be released later this month, the Reserve Bank may have trimmed the cash rate to give consumer sentiment a boost ahead of the Budget announcement.
Regardless of the reasons behind the rate cut, the decisions to trim the official cash rate should spell good news for homeowners.
If February’s rate cut is anything to go by, borrowers can expect their lender to pass the RBA’s latest rate cut on, taking home loan rates to new lows. Some banks have already announced interest rate reductions.
This opens up a great opportunity for home owners and potential home buyers alike.
If you have been in the same mortgage for the last few years, you may find there is another product that is not only cheaper, but more suitable to your needs.
Alternatively, if you are looking to get onto the property ladder in the not-too-distant future, now may be a great time to do just that.
To learn more about your home loan options, give Mortgage Choice in Mudgeeraba a call on 5559 2563 or send John an email on email@example.com