The Reserve Bank of Australia has announced that it will cut interest rates. This sets a new record low rate of 1.75% – the first change since May last year.
The Bank is hoping to stimulate an under-performing local economy. Low interest rates continue to support housing market activity. However, given the recent changes to lending policy, it remains to be seen whether banks will pass on the cut.
If it does, it is positive news for mortgage holders and for investors who are ready to invest but haven’t had the serviceability. A lower interest rate will help that group of potential investors get into the market.
If you would like to find out how this change will affect you, please call Calla Property on (02)9016 2852