AUGUST – INTEREST RATE CUT!

At its meeting today, the Board decided to lower the cash rate by 25 basis points to 1.50 per cent, effective 3 August 2016.

RBA-header

The RBA has cut the official cash rate to 1.5%.

This result was widely predicted with many experts tipping the RBA would lower the rate to provide some stimulus for the economy following last week’s disappointing CPI numbers. Amidst the dramatic U.S. election campaigns of Clinton vs Trump, a turbulent market in the EU following Brexit and the Turnbull government remaining in power, the RBA has opted to try and trigger an increase in consumer spending this month.

What does all this mean for home owners and buyers?
This may also give the property market a boost provide an opportunity for Australians to take advantage of the record low interest rates and competitive offers available in the market.

Here is a table showing how Australia’s average mortgage sizes may be affected:

Loan amount examples Likely decrease in repayments
$150,000 $31.25 per month
$250,000 $52.08 per month
$350,000 $72.91 per month
$450,000 $93.75 per month
$550,000 $114.58 per month
$650,000 $135.41 per month
What are the median dwelling prices in the nation’s capital cities?
Melbourne $585,000
Sydney $775,000
Brisbane $477,500
Adelaide $417,500
Perth $490,000
Hobart $327,800
Darwin $497,500
Canberra $561,000

Source: Core Logic

While the official cash rate has been slashed, banks and non-bank lenders continue to move their rates out of cycle and there may be a better product for your circumstances. If you want to discuss your home loan rate, fees or structure, please feel free to get in touch with Justin Murphy of Ray Backhouse Financial Services.

Justin Murphy

0433 192 167

justin@raybackhouse.com.au