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
TeganWe are so grateful for everything Justin Thom did to help us with our home loan. From the very beginning, Justin was friendly, approachable, and genuinely cared about making the process as easy as possible for us.
He explained everything in simple terms, answered all our questions with patience, and always made us feel comfortable and supported. It can feel overwhelming, but Justin went above and beyond to guide us every step of the way.
Thanks to his hard work and dedication, we were able to secure the right loan for our family and move forward with confidence. We honestly couldn’t have done it without him and wouldn’t hesitate to recommend Justin to our friends and family.
Tristan BothaHelpful, responsive and great communication! Justin ensured we were in-the-loop and knew exactly where things were up to throughout the whole process!
Highly recommend MAP Home Loans and will be sure to use them again, when required!
LydiaJustin was recommended to us by family when we began our journey into purchasing our first home and applying for a mortgage in 2022. As first-time buyers, I felt a little overwhelmed, but Justin was always readily available to answer questions. I especially appreciated a call — outside normal working hours — to let us know the RBA was about to hike rates, giving us the chance to lock in our offer beforehand. Justin listened to our goals and found options that suited us. A couple of years later, we returned to him for refinancing to consolidate debt, and again we were grateful for his guidance. The process was seamless, and we secured an amazing rate.

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