RBA slashes rates

The Reserve bank today slashed its cash rate by 100 basis points to 4.25%. Interest rates are now at a six and a half year low, with more cuts expected.

Commonwealth Bank and NAB have announced that they will pass on the full rate cut, effective 12 Dec. Westpac said it would cut rates by 80 basis points, while ANZ cut rates by 0.83 of a percentage point. Other banks are expected to make an announcement soon with regards to their rates.

Today’s rate cut is great news for homeowners. For a typical 25 year, $300,000 home loans, today’s rate cut, if passed on in full by lenders, will save borrowers about $193 a month in payments, or $58,000 over the life of the loan.

If you haven't done so already, we recommend that now is the time you review your home loan. Speak to one of the financial advisors at Intellichoice now on 07 3624 1900 for a free 30 minute review on your home loan.