Reserve Bank delivers early Christmas present to home owners
Angus Raine, CEO of Raine & Horne, says he is pleased the Reserve Bank has cut the official cash rate by 0.25%, to 3%, its lowest point since September 2009.
“Santa has arrived early for many Australian homeowners with mortgages, in the guise of Glenn Stevens and his able helpers, the Reserve Bank board,” said Mr Raine.
“The savings generated by the rate cut will help ease the pressure on many families as they face up to the usual costs associated with the festive season.”
Mr Raine added that if the family budget allows it, home owners could also take advantage of lower interest rates by electing to keep their loan repayments at the same levels as they were prior to today’s rate cut.
“If a homeowner with a mortgage elects to keep their repayment amounts at the same level as they are currently paying, they can actually pay more than the minimum loan repayment, which lets them pay down the principal faster,” said Mr Raine.
“However I would seek the advice of your lender or mortgage broker before making a decision about additional repayments.”
That said, the rate cut is also set to boost confidence in the Australian property market, noted Mr Raine.
“There will definitely be a more positive start to the property market in 2013 as a result of the cut, and it should generate a buzz of buying activity in the new year.”