The RBA has cut interest rates by 0.25 per cent.
It’s a massive sigh of relief for local mortgage holders who have dealt with multiple rate rises and cost-of-living increases in recent years.
It’s also a win for Prime Minister Anthony Albanese, with the rate cut likely to work in his favour ahead of an election.
The official cash rate now sits at 4.10 per cent.
Executive Director of Business Western Sydney, David Borger, said it was good news for western Sydney locals.
“Studies consistently show it is homeowners in areas like western Sydney and south western Sydney who are most leveraged and subject to mortgage stress,” he said.
“Our pedestrian malls and suburban shopping strips are doing it tough. Retail and hospitality can’t seem to catch a break. An interest rate cut will help to increase that foot traffic and get people spending again.
“Western Sydney is ready for some relief.”
Graham Cooke, Head of Consumer Research at Finder, said it was welcome news to mortgage holders across the country.
“With a record number of households in financial distress, many will be breathing a heavy sigh of relief,” he said.
“Now is the time to take action and review your home loan. After this rate cut, if your interest rate doesn’t start with a 5 – you’re paying too much.”
Aussies with the average home loan of $641,416 will save over $100 per month, if their bank/lender passes on the full 25 basis points rate cut.
These Australians would see their mortgage drop from $3,887 per month to $3,784 (a saving of $103).
Troy Dodds
Troy Dodds is the Weekender's Managing Editor and Breaking News Reporter. He has more than 20 years experience as a journalist, working with some of Australia's leading media organisations. In 2023, he was named Editor of the Year at the Mumbrella Publish Awards.