For the second month in a row the Reserve Bank of Australia have slashed the cash rate. This time down to a historic low of 1%. The low cash rate is an attempt to boost household spending as well as the economy in general.
The first cut since 2012 was implemented last month which took the cash rate to a rate of 1.25%.
Economists are predicting a further cut to a potential 0.75% in the later months of 2019.
So, what does the rate cut mean for your regular mum and dad?
Below is a table showing how the average Australian mortgage may be affected:
|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|
It’s time to use those extra monthly savings and spend spend spend. All to help the economy of course.
If you are unsure how these changes will affect your individual circumstances, click here to contact us today.