RBA out of cycle emergency rate cut
Today, the RBA announced an out-of-cycle emergency rate cut to help the Australian economy withstand the impact of COVID-19.
The RBA has reduced the cash rate to a new record low of 0.25%.
As you’re probably aware, lenders review rates independently of the RBA and some may decide to pass this rate cut on to customers at different levels over varying time frames.
Today’s rate cut will hopefully lead to repayment decreases as outlined below across Australia’s average mortgage sizes:
|Loan Amount Examples||Likely decrease in repayments|
|$150,000||$21.45 per month|
|$250,000||$35.75 per month|
|$350,000||$50.05 per month|
|$450,000||$64.35 per month|
|$550,000||$78.65 per month|
|$650,000||$92.95 per month|