On Tuesday, the Reserve Bank of Australia decided to decrease the Cash rate by 0.25% to 1.00%
It was a surprise move according to many economists in the media, as there was a rate reduction in the previous month of June.
Before the decrease in June, there were no rate changes for 18 meetings; this was a record.
The last time this happened was in 1996 more than two decades ago when the RBA went for 17 meetings with no changes to the Cash rate.
What does an interest rate decrease mean for home loan owners?
If you are on a fixed rate, this does not affect your monthly repayment.
For homeowners or investors with variable home loan rates, your bank will decide on how much of the 0.25% reduction they will pass on.
Some banks have made announcements already, and some will have set dates to when they make a decision.
If you are unsure, contact your bank or broker.
With lower interest rates, your minimum monthly will decrease, there are a few strategies you have with lower home loan repayments.
While the last option sounds nice, it is probably not the most financially sensible thing to do
Ashleigh StanleyWe’ve had the pleasure of working with Justin Thom to refinance our loans in order to purchase another block of land, and we couldn’t be more grateful for his support throughout the process.
From start to finish, Justin made everything feel straightforward and explained concepts to help us understand the process too. He went above and beyond to help us secure the best possible loan, taking the time to find the right bank and deal to suit our needs. Even when a few hurdles came up from our side, he was very flexible and found solutions for us! He is proactive in his approach, had very clear communication, and was always willing to make time for us.
Justin is very professional, yet we felt he genuinely cared for helping us. We felt completely supported every step of the way and would highly recommend him to anyone looking for a knowledgeable and dedicated broker! We will definitely be using him as our broker from now on.
Kyle MeehanWe had an exceptional experience with Justin. His patience throughout the process was remarkable, always taking the time to explain every detail and answer our numerous questions. He kept us informed at every step and ensured we understood all our options. His support throughout, and post completion, was invaluable, making us feel confident and secure in our decisions. We couldn’t have asked for a better partner in securing our mortgage. Highly recommend!
Ari & Nadene ThomasWe recently worked with Justin refinance our loan. This is the 2nd time working with him and both times have been a pleasure.
Justin has always gone above and beyond to assist us to ensure we get the best possible service. Not only does he show a professional attitude toward his role, but he also shows a genuine interest in our family to assist with our financial matters.
I would have no hesitation in recommending Justin to people important in my life.
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