- August 6, 2013
- Posted by: admin
- Category: Enconomy, Finance News, Financial goals, House prices, Inflation, Interest rate, Wealth
RBA governor Glenn Stevens said the rate cut was a wise move for the board, as data released earlier this month found headline inflation was considerably weaker than expected.
The 25 basis point cut was a good move and, provided the lenders follow suit, it could save home owners approximately $60 a month on a $300,000 mortgage.
For those looking to purchase a new home, these lower rates are going to encourage buying however I would caution those looking at a home loan to understand interest rates aren’t always going to be this low.
A savvy strategy for those looking to pay off their home loan faster and with less interest charges, would be to maintain their repayments at the same amount paid before the rate cut.