What does that mean for me and my mortgage?
On 18th February, 2025 the Reserve Bank of Australia lowered the cash rate to 4.1% from 4.35% after a 14-month long hike.
This action paves the way for banks to lower interest rates for borrowers and provides a welcome relief in repayments and the cost of living crisis that Australians have been experiencing due to the economic hangover from COVID19.
There has been an indication from the RBA and economists that this may be the first of four cash rate drops to come.
What does that mean for you?
A drop in the cash rate allows banks and lenders to lower the interest rates on mortgages, meaning your repayments will come down if your lender passes on the savings.
This is a great time to get in touch with a mortgage broker at Allen Finance in South Bunbury, Western Australia to do a health check on your current mortgage, or to understand if you are in a better position to buy a home.
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