Mortgage holders welcome 2.75% cash rate

IN a largely unexpected move yesterday the RBA has reduced the cash rate to 2.75 per cent which is the lowest since records began in 1959.

And, to the added delight of mortgage holders, the major banks – with the exception of the ANZ – have passed on the full 25 basis points cut. This will provide a monthly saving on a $300,000 mortgage of about $31 giving home owners welcome budget relief.

The RBA cited low inflation numbers and generally pessimistic market expectations as the trigger to reduce the cash rate, hoping the move will generate more spending in the economy.

Financial experts claim this is an ideal time to check out interest rates on offer from big and smaller lending institutions to ensure home owners are getting the best possible deal on their mortgages.