RBA cuts cash rate to new low
The Reserve Bank of Australia has cut the cash rate for the first time in 18 months, taking the official rate to the historical low of 2.25 per cent.
Last month’s disappointing consumer sentiment result combined with a recent spate of poor economic data ultimately forced the RBA to take action and cut the cash rate.
Data from the Westpac Melbourne Institute of Consumer Sentiment found confidence grew by just 2.4 per cent in January to 93.2, meaning pessimists still outnumber optimists by a significant majority.
And it is not just consumer sentiment that is low at the moment. The latest Monthly Business Survey from National Australia Bank found business confidence is currently sitting well below long run averages.
Now that the Reserve Bank has cut the official cash rate, it is likely that Australia’s lenders will follow suit and trim the interest on their suite of home loan products.
If this does happen, the cost of borrowing will ultimately become more affordable than it has been in a very long time, making now a good time to review your home loan.
As your local Mortgage Choice broker, I can compare your current home loan against others available in the market, to see if we can find you a loan that is not only better suited to your needs, but much more competitively priced. You may find you are able to save hundreds, if not thousands of dollars per year!
For a free Home Loan Health Check, please call me on 07 5562 0748 to arrange a time to meet.
See the official media release from The Reserve Bank of Australia - RBA February 2015 Media Release
As your Gold Coast Mortgage Broker and Home Loan specialist, our office is located in Robina servicing the Robina area and other suburbs including Varsity Lakes, Burleigh Heads, Burleigh Waters, Mermaid Beach, Mermaid Waters, Miami, Nobby Beach, Bonogin, Mudgeeraba, Reedy Creek, Tallai, Worongary and surrounding areas on the Gold Coast.