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
Kobus&WillemienJustin assisted us in buying our first house, in Australia, 10years ago. He just did it again with our second house. Same old story again… Always helpful, always available, always friendly. We didn’t had any stress, he just sorted it and came up with the best results to suit us. What a pleasure to work with. Thanks Justin, you just made it so easy.
Brendan ConquestWe have been working with Justin for almost 10 years and he has always made the process easy and time efficient. Justin’s help to get things over the line is stress free and uncomplicated, he always handles everything with such care and compassion.
We are extremely grateful for Justin’s services and would highly recommend him and the MAP home Loans team to anyone in need of help, advice or guidance with their home loans.
Thank you, Justin!
Timothy RussMy Wife and I worked with Justin to purchase our first home and we couldn’t be happier with the help we received to make our dream a reality. Justin had answer’s to every question and made it very easy to understand how it all works. I highly recommend using Map home loans to take the stress out of buying a house.
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