Earlier this week, the country’s two biggest banks passed on the latest interest rate cuts for loan customers. The Commonwealth Bank and Westpac have paved the way for other banks expected to follow suit on Friday, February 6. The Reserve Bank of Australia’s (RBA) official rate cut will begin its full effect on February 20, creating an opportunity for the cheapest home loans in more than forty years.
Since the steady decline in the Australian dollar and the fallen price of oil in the past few months, the RBA has reduced the standard variable rate to a record low of 2.25%. The RBA governor Glenn Stevens said the board judged that a reduction in the cash rate was “appropriate” due to the downward forecast of the economic growth and a peak in the unemployment rate. Commonwealth Bank of Australia was the first big bank to reduce its standard variable rate by 0.25% but Westpac reduced its SVR by 0.28%, making it its lowest level since 2009.
Interest Rate Cuts – What it means for Australians
The latest interest rate cut posed by the RBA opens the door for many existing and new homeowners as well as business owners. The new, lower interest rates provide homeowners with a better chance of being able to successfully make regular repayments on their home loans. However, banks and other traditional lenders will still check loan applicants’ credit files if they qualify for a loan. Blemishes on credit files can stand in the way of new and existing homeowners from being able to fully access the benefits of the new lower interest rates.
An alternative to traditional lenders is to apply for home loans through other financial institutions. Australian Lending Centre is offering similar interest rates through our range of products so applicants can enjoy the new lower rates. Our loan options include first home buyers loans, home equity loans, bad credit home loans, investment property loans, second mortgages and many more.
The RBA’s interest rate cuts provide exciting opportunities for new homeowners and businesses. And Australian Lending Centre can help you take advantage of this amazing opportunity. Call us on 1300 138 188 for a free consultation or enquire online today.