The first move has been made to interest rates in almost three years, with the board members of the Reserve Bank of Australia announcing a 0.25% cut to the official cash rate. It now stands at a record low 1.25%.
ANZ Bank CEO Shayne Elliott said that an official interest rate cut would ‘put a bit of ‘juice in the economy’ and ‘give home owners some breathing space.’
The aim of an interest rate cut is to stimulate the economy with more spending. The other objective is to lower the Australian dollar to boost exports.
But, you ask – what does all this mean for YOU? It depends – all eyes are on the banks to see if and when they make a move. It is likely that at least a few lenders will be cutting their rates, in line with today’s announcement.
So, with the interest rates at a record low, here’s some food for thought:
- If you hold a variable mortgage, it might be time to look at a fixed interest rate mortgage.
- Look at the possibility of changing to a lender who offers better rates.
- Get serious about that investment property.
- If you’re a first home buyer, timing is perfect.
- If you have extra cash each month, look at making improvements to your home.
No matter what your situation, this may be the perfect time to look at your options. Give us a call – we can arrange a time to sit down and see what’s possible.