06 Jun RBA Cuts Rate: Has your bank passed the interest rate cut on?
Great news for homeowners and borrowers! For the first time since August 2016, the Reserve Bank of Australia (RBA) cut the official cash rate to just 1.25% – the lowest level in Australian history.
Experts widely predicted a rate cut would follow after the Federal Election and during May, many lenders started to cut rates on both variable and fixed rate home loan products in anticipation of the June 2019 decision.
Now that the RBA officially cuts the rate by 25 basis points, leaving it at a record low of 1.25%, has your bank follow suit? If you’re dissatisfied and want to explore other options to maximise your potential savings, you can always opt to switch, especially now that a raft of lenders are expected to follow with rate cuts of their own.
Let’s assume you have 25 years left on your mortgage, you still owe $400,000 and your current interest rate is 4.30% (which is the average variable owner-occupier rate on the RateCity.com.au database). Here’s how a drop to 4.05% might improve your financial position:
If your bank doesn’t pass on the full cut, you’re still in a strong position as there are a wide range of lenders out there. I can help you shop around for a more competitive deal.
Reference: Business Insider Australia, Now that the RBA has cut the official cash rate, here’s how you can benefit
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