If you didn’t back a winner on Melbourne Cup Day then fret not: the Reserve Bank of Australia (RBA) has delivered mortgage holders a win by cutting the official cash rate by 15 basis points to a new record low of 0.10%.
RBA Governor Philip Lowe says the cash rate cut is part of a package of measures to support job creation and economic recovery from the COVID-19 pandemic.
“Given the outlook for both employment and inflation, monetary and fiscal support will be required for some time,” Governor Lowe said in a statement.
As such, Governor Lowe added the low cash rate is likely here to stay until actual inflation is sustainably within the 2 to 3% target range.
“Given the outlook, the board is not expecting to increase the cash rate for at least three years,” Governor Lowe said.
Want to know what this rate cut means for your home loan?
This is the last rate cut the RBA is able to make before venturing into negative territory (which it’s previously indicated it won’t do).
It’s also the sixth RBA rate cut since June 2019, which means if you haven’t had our Property Finance Team do a free home loan health check in the past year, then there’s a good chance you’re paying more interest than you need to on your home loan.
So, if you’d like to explore your options – whether refinancing with another lender or renegotiating with your current one – then get in touch with an Allied Finance Broker today. We’re here and ready to work through your options and find the best possible deal.
Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.