You are most likely aware by now that the official interest rate has a zero in front of it for the first time ever.
The Reserve Bank of Australia cut the cash rate to a new record low of 0.75% on Tuesday – the third cut in five months.
Experts believe the cut is aimed at stimulating the economy, creating more jobs, increasing inflation and boosting household spending – but the side effect will be an explosive rebound in house prices.
History shows that most banks do not pass on the full cut, with borrowers likely to receive a cut of between 0.15 per cent and 0.20 per cent.
This is a great time to consider buying or selling property. For buyers, it can be easier to obtain a loan, and you borrow at a low rate.
For sellers, interest rate cuts tend to generate buyer demand, possibly leading to higher sale prices.
Please contact us if you would like to take advantage of the interest cut by either selling or buying property.