The RBA has moved into new territory today with the board deciding to reduce the cash rate by 25 basis points to an all-time low of 2.75%. Depending on how the major lenders choose to pass on these savings, homeowners could be paying the lowest rates on their mortgages in recent history.
The RBA, citing low inflation numbers and generally pessimistic market expectations, has reduced the cash rate to attempt to spurn economic activity in wake of a global market which is experiencing jitters, with the European debt market showing signs of volatility.
The actions of the RBA to date have been relatively successful in maintaining a steady level of growth domestically, despite being less than what was predicted towards the end of last year.
In light of this announcement, it’s important to take the time to compare what you’re currently paying on your home loan with the current deals in the market – as you could be paying thousands of dollars more than you should.