Australia’s cash rate has been cut for the first time in six months by the Reserve Bank of Australia (RBA). The RBA cut the cash rate by 15 basis points for the first time since March, which takes the cash rate to an unprecedented low of 0.10%.
RBA Governor Philip Lowe said, “At its meeting today, the Board decided on a package of further measures to support job creation and the recovery of the Australian economy from the pandemic.”
This is the third time the RBA has slashed rates in 2020. In January, the cash rate was 65 basis points higher at 0.75%. These rate cuts are largely due to the recession and lowered economic activity that has been propelled by COVID-19.
What do super-low interest rates mean for Australians?
Australia’s cash rate is the amount of cash the banks have to pay on the money that they borrow. Usually, when the RBA lowers their cash rate, the major banks follow suit and pass the lower rate onto their customers.
The lower the interest rate is on the loan you have with your bank, the less money you’ll have to eventually fork over to pay off the loan.
This can mean savings for a lot of Aussies if their bank passes on the cut.
So what does all this mean for you?
These are historical, record low rates. Australia has never had an interest rate this low and that could mean money back in your pocket starting soon. And, the RBA said that they will likely keep interest rates at 0.10% for at least the next three years.
If your bank passes on the full cash rate cut from the RBA, the average Australian homeowner would get back about $33 per month. That’s a savings of over $1,100 on the average mortgage over the next three years – money that you can use to supplement your super or just to take a nice little holiday.
And that’s savings calculated only from the most recent rate cut, there could be even more savings available depending on the interest rate of your current loan.
Which banks will cut variable interest rates?
Get in touch today to find out if your bank is passing on the RBA’s historic rate cut and to find out if you could save even more money by refinancing.
Why do homeowners looking to refinance their mortgage choose LiveInvest?
- Fast Approvals: It’s always a competitive market when you’re a homeowner looking to refinance their mortgage and time is one of the most important factors in your home success. We get results as quickly as possible. With relationships with all major lenders, we’re able to fast track your loan and streamline the application process so that your loan can get approved fast.
- Convenience: You’re busy! And you work hard. Your time is valuable and LiveInvest ensures that you don’t spend time waiting at the bank to lodge your application. We’re also available to answer all your questions at a moment’s notice. And best of all – our brokers come to you!
- Range: We offer a range of products that will suit the needs for every first time home buyer. Give us a heads up if there are certain details we need to be aware of to fit your situation and we’ll find an affordable solution for you!
- Relationship: Unlike your average broker, our refinancing service goes beyond the approval of your loan. We provide ongoing support to ensure that you continue to have access to the best finance solutions on the market! We’re always here to answer your burning questions.
- Network: We partner with the best local professionals and businesses no matter where you’re located!
If you’re a homeowner interested in exploring your options to refinance your mortgage, call us today at 1300 831 288!