Some months ago, the Reserve Bank of Australia cut interest rates down to 2.75% which was great encouragement for Australian home buyers to secure a home loan.
The Governor of the RBA Glenn Stevens declared that this decision was made in order to support “…interest-sensitive spending and asset values” and did not rule out the possibility of further cuts down the track.
Following this announcement, many Australians were able to easily afford purchasing their first home without having to worry about hefty interest repayments. Many others were also encouraged to get additional properties for investment purposes.
Now, we’ve all heard the news yesterday that the RBA has cut interest rate again as the Governor of RBA had said some months ago. This time, down to 2.5% which is the lowest it’s been in years. This potentially means two benefits from your perspective.
In the first instance, it means that if you’re an existing home buyers on a typical home loan of around $300,000 then you could could potentially save up to $500 per month, or as much as $6000 per year on interest repayments.
In the second instance, it means that if you don’t already have a home loan or have been thinking about purchasing an investment property then right now is actually the perfect time for potential homeowners to secure a great home loan deal for their home or land purchase.
Both the property and the finance markets are about as unpredictable as each other and you never know what change comes next. Economists, at best, can only make predictions based on existing trends. Neither is there a guarantee their predictions are absolutely accurate, nor should we expect them to be.
The current financial landscape is expected to stimulate the demand for home loans by investors and non-first home buyers leading to a restoration of trust in the property market.
If you already have a home loan, now is the perfect time to get in contact with us at SwitchMyLoan.com.au so that we can let you reap the benefits of the RBA’s recent cuts on interest rates!
Call 1300 307 155 and start saving today!
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