On November 2, the Reserve Bank of Australia (RBA) cut interest rates to a record low of 0.10 per cent! This rate cut is not only great news for borrowers who may be eligible to save hundreds each year with applicable lenders, but it will also stimulate a much-needed boost for the economy.

A cash rate reduction by the RBA means that lenders pay less for money and this often leads to these savings being passed onto borrowers. 

The Commonwealth Bank was the first major bank to respond to the RBA’s November rate cut, announcing reductions to 4-year fixed loan rates. Westpac has also announced that it will make cuts to fixed loan rates. 

If your bank or lender isn’t passing on any savings as part of the November RBA rate cut, it’s worthwhile to shop around and perhaps even refinance – this could save you big in the long run.

If you’re in a position to, now is also the ideal time to negotiate a better interest rate with your current lender. Even if you’re able to drop your rate by a few percentage points, every little bit helps.

But it’s not just home owners who will benefit. Reduced interest rates will drive demand up for home loans, causing more demand on the property market – a great way to stimulate the economy and increase jobs in many sectors.

Considering buying a home and want to know how the interest rate cut can benefit you? A reduced rate might mean you are able to borrow more money than previously budgeted, so you have a little bit extra to spend on your dream home!

With interest rates now lower than ever before and property prices expected to start increasing soon in most capital cities, now is the ideal time to consider buying your dream home!

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