Interest Rates Down 0.25%

The cash rate decision for March has been announced by the RBA with a rate cut.
 
The RBA has reduced the cash rate to a new record low of 0.50% in response to the economic threat posed by the coronavirus outbreak and bush fire crisis.
 
Whilst the Reserve Bank would have been encouraged by recent economic data confirming continued house price increases and business investment, the dangers to the economy posed by the virus and fires and fears of a recession left the RBA with little option but to reduce rates.
 
Here is a table showing how Australia’s average mortgage sizes may be affected:
Loan Amount Examples Likely decrease in repayments
$150,000 $21.45 per month
$250,000 $35.75 per month
$350,000 $50.05 per month
$450,000 $64.35 per month
$550,000 $78.65 per month
$650,000 $92.95 per month

It looks like most lenders are going to pass on the full 025% rate cut as NAB and ANZ have reduced their rates by this amount, however, lenders continue to review rates independently of the RBA with some already making reductions in anticipation of the RBA decision. It is therefore important to review your lending options regularly to ensure they remain the most suitable for your situation.

If you have any questions about these announcements or interest rates, please feel free to contact us.

To view interest only repayments you can calculate these by using one of our mortgage calculators or commercial loan calculator.

For more information regarding residential home loans, investment and commercial loans please visit Smart Search Finance.

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