Christmas has come early for mortgage holders this year, with the Reserve Bank of Australia deciding to lower the official cash rate.
At its meeting today, the Board has decided to reduce the cash rate by 25 basis points to 3.0%.
Their decision was based on information that suggests our economic conditions are somewhat weaker than expected.
This rate cut should help to improve affordability and confidence in the housing market, but whether banks pass along the cut in full remains unknown. Over the next few days we will find out which lenders will be passing on this reduction, and to what percentage.
The Reserve Bank Board do not meet in January, so their next meeting is scheduled for Tuesday 5 February 2013.
If you have questions about your current circumstances, or this most recent RBA announcement, please get in touch today. Now is a great time to review your loan, look at what you want to achieve financially in 2013, and find out what we can do to help you.
