8 Nov 2011
Even if you didn’t make a lucky bet at the Melbourne Cup last Tuesday, homeowners all received some great news when it was announced that interest rates were cut by 0.25 per cent.
The recent interest rate cut is the first one that Australia has seen in two and a half years, and it brings the cash rate down to 4.5 per cent.
The new cash rate amount means that the average mortgage holder should be able to save about $50 a month, but even if you can start paying less off your mortgage each month that doesn’t mean that you necessarily should.
If you have been comfortable paying the higher interest rate level then it is a good idea to keep paying the same amount to help you get ahead on your home loan payments and create a buffer if ever you need it.
The rate cut isn’t just good news for homeowners though, it’s also great news for homebuyers who are likely to have more confidence in the real estate market, knowing that home loans are now more affordable.
I’m sure many will be wondering where interest rates are headed next, but while nobody knows for sure, homeowners can at least rest assured that it doesn’t look like they will be headed upwards anytime soon.