Here’s the latest update from our finance partner Mark Polatkesen, Director & Mortgage Broker at Mortgage Basics.
In the past week the reserve bank has hit an all-time low cash rate of 1.5% which is giving households with a mortgage more disposable cash in their budgets.
The banks have not unfortunately passed the full rate cut on with many lenders only opting to discounts their rates .10 to .13% of the .25% which was cut from the Reserve Bank.
Hopefully these cuts will allow homeowners the opportunity to pay extra into their current mortgage or use the surplus money to pay down existing debt.
With rates also being so low, it is attracting many investors back into the market as the interest only repayments are not too much apart from the returns offered from tenants.
It is a great time to compare rates with lenders as the market for new to bank customers is very competitive with lenders offering fixed rates from as low at 3.75%