RBA: Rate cut will ‘increase mortgage affordability for everyone’

Font size :
The Reserve Bank of Australia calmed fears that the rate cut will further stimulate housing prices, saying that there are little risks to the lowering of the cash rate from two per cent to 1.75 per cent.

“In reaching today’s decision, the board took careful note of developments in the housing market, where indications are that the effects of supervisory measures are strengthening lending standards and that price pressures have tended to abate,” Reserve Bank Governor Glenn Stevens said in a statement. “At present, the potential risks of lower interest rates in this area are less than they were a year ago.”

RBA further said that outside stimulus, such as tightening of lending standards and foreign lending cuts are already doing enough to cool the market.

Property analysts welcomed the rate cut, saying that this move could boost the economy and attract more first-home buyers into the market, especially in softer performing capitals like Perth and Darwin.

“It will improve overall confidence and allow people to get ahead on mortgage repayments and increase mortgage affordability for everyone,” said Grant Harrod, chief executive of LJ Hooker. “However, we don’t expect to see another huge jump in property prices.”

According to online comparison website Ratecity.com.au, the rate cut will help save home buyers about $50 a day on an average $300,000 30-year home loan. Another comparison site, finder.com.au, also agreed that home buyers stand to benefit from this move, but only if they do their homework.

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Friday, Sep 22, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords