RBA Update: Interest Rates Reduced Again

Posted on December 4th, 2012 · Posted in News

THE Reserve Bank of Australia has cut official interest rates by 0.25% to 3.00% a great pre-Christmas boost for home owners and potential buyers.  Not since April 2009 has the Reserve Bank cut the cash rate to such a low level.

Attention now turns to how much of the rate cut banks will pass on to mortgage holders.  If the banks do pass the cut on in full, the proportion of family income to meet loan repayments will be 30.3%. This is a 5% increase in affordability since the June quarter of 2012 and when it comes to the household budget, the average monthly loan repayment will be reduced to $2,077 (approx. $480 a week). This is $150 a month less than a year ago.

If you would like us to review your current lender, product and interest rate feel free to contact us for a free finance review.