In its latest meeting, the Reserve Bank has decided it will be cutting the cash rate by 0.25 per cent, bringing it to a record low one per cent.
This marks the first time since 2012 that the board has cut in consecutive months.
RBA governor Philip Lowe said the decision comes as part of a push to support employment growth and reinvigorate a slowing economy.
Another added bonus for borrowers is that APRA (Australian Prudential Regulation Authority) is going to remove its seven per cent interest rate floor for mortgage service ability.
What this could mean for you:
1. Savings on average of $1,000-2,000 per year on your home loan
2. Higher borrowing power
3. Housing market growth
For more information on this or any finance matter, please contact me on 0400 949 797 or email me at isaac. firstname.lastname@example.org.
Isaac Baker is a local mortgage broker who operates Yellow Brick Road Geelong & Torquay from their Torquay office; Level 1, corner of Merrijig Drive and Fischer Street in Torquay. Advice in this column should be taken as general in nature and might not apply to your personal circumstances