Today’s decision by The Reserve Bank of Australia to drop the cash rate by 25 points to 2.50 per cent sees the lowest cash rate in more than fifty years.
This is the eighth reduction since November 2011 and equates to a saving of approximately $45 per month on the average $300,000 mortgage.
Westpac has already announced a cut to their standard variable rate of 0.28 per cent reducing it to 5.98 per cent. At the time of writing NAB, CBA, Bank of Queensland and St George will also follow through with a full 0.25 per cent drop.
Today’s decision is, in part, designed to protect the economy from further declines in the mining sector and is predicted to provide a major boost for the housing and manufacturing sectors.
Further discounting and competitive pricing is expected as the cost-of-funding pressures of the last few years have eased significantly. Banks are looking to take market-share and that’s good news for existing mortgage holders and those looking for additional funding.
For more information on how much these rate movements could save you contact the team at Green Finance direct on 07 3899 2866 or email us at [email protected].