Interest Rate Cuts

At the beginning of December, the RBA has made the move to cut interest rates by 25 basis points for the second month in succession (taking the cash rate to 4.25%). So what does this mean for the home buyer?

The end of November saw the average standard variable mortgage rate at 7.55% and the average 3 year fixed rate was 6.4% mortgage payers are still to see if the whole 25 basis points cut will be passed on. If this happens, variable mortgage rates will revert to decade average levels. If 3 year fixed rates remain unchanged, they will be 66 basis points below the decade average.

With this news of suspected interest rate falls coupled with the rapid growth of disposable income of the average household, Australians are set to benefit considerably over the coming months.