Great news for homeowners and borrowers! At its June meeting today, the Reserve Bank of Australia (RBA) cut the official cash rate to just 1.25% - the lowest level in Australian history. Analysts widely predicted a rate cut would follow hard on the heels of the Federal Election and during May, many lenders started to cut rates on both variable and fixed rate home loan products in anticipation of today’s move. While passing on the full cut is often avoided, this time it seems likely borrowers will enjoy the full benefits as the big banks work to restore trust following last year’s Royal Commission.
Clients on home loan variable rates can expect their respective banks to communicate in the next couple of days that they will be reducing their variable rates. Please keep an eye out for this.
Wishing you a great week ahead,