June update: RBA keeps interest rates on hold
At its meeting today, the Board of the Reserve Bank of Australia decided to leave the cash rate unchanged at 2.75 percent.
Despite no rate drop today, most variable home loan customers will get some relief in coming weeks as the effects of last month’s unexpected 0.25 percentage point cut comes into effect.
RateCity can reveal that the majority of lenders in its database – 85 lenders or 76 percent – dropped their standard variable rates following the last rate cut on May 7. Out of these lenders, 70 passed on the RBA’s full cut
Alex Parsons, chief executive of RateCity, said for the majority of variable home loan customers the next mortgage payment will be automatically lower by around $50 per month on a typical $300,000 mortgage.
“Most lenders will automatically drop their borrowers’ repayments when interest rates fall so it’s up to borrowers to contact their lender if they want to keep their repayments higher,” he said.
A family with a $300,000, 30 year home loan could shave two years – and around $30,000 in payments – off their home loan by making an extra monthly repayment of just $50.