The Reserve Bank of Australia (RBA) cut interest rates by 25 points Tuesday in response to the country's worsening economic outlook and stimulate spending.
The RBA's decision further lowered interest rates to 3.25%, the lowest in three years. This brings the cuts to a total of 1.5% over the past 12 months, with further cuts expected on Melbourne Cup Day in November. Factors, such as falling commodity exports and the uncertain outlook of China's economy, prompted these changes.
Borrowers will primarily benefit from the cuts, as they could expect an average of $48 off their monthly repayments on a 25-year mortgage worth $300,000. The actual reduction, however, will depend on every bank's rates, and the mortgage's terms and value.
Do you have a mortgage? The RBA's recent cuts mean that you could get better rates and reduce your monthly payment today. Or, continue with your current payment schedule, and potentially take years off the term of your loan. Find out how much you can expect to pay by contacting our qualified advisors at Rate Detective.