Home Buyers Rejoice After RBA Announces Interest Rate Cut | Written For Jubilee Wyndham Vale

What does this mean and how will you benefit?

In the first official rate move since August 2016, the Reserve Bank of Australia (RBA) announced on June 4th 2019 that it will lower the cash rate from 1.5 per cent to 1.25 per cent.

This highly anticipated reduction comes as a support to employment growth and to provide greater confidence that inflation will be consistent with the medium-term target.

Most of the banks are promising to pass on the cut to borrowers which is great news for the Jubilee buyer, and data which has been released by REA, shows that it is likely to have a very positive effect on the housing market.  This basically means that you, as a buyer, now have access to more money to buy and there is more confidence in the market as a whole.

In addition, the rate cut, combined with regulator plans to soften borrowing rules, and the Liberal government’s win spelling the end of negative gearing tax changes, is suggested by industry experts such as Professor Richard Holden of UNSW’s School of Economics, Mortgage Choice chief executive Susan Mitchell and Domain economist Trent Wiltshire, to be enough to stop the fall in prices we have seen in recent times. What that means is that some borrowers will now be more eligible to get a loan.

This is a complementary result to Jubilee’s Price Protection and $25,000 Builder Boost promotions which are running at present, as it further increases the ability to purchase your dream home with all the additional benefits.

Loan comparison website Finder has commented that if the rate cut is passed on in full by the banks, then you could save almost $21,000 over the life of your loan, based on an average home loan size of $384,700 with an average variable rate of 4.91%.

In other words, if you had a $500,000 mortgage, then you could save $75 a month.

So, with a turnaround in buyer confidence and activity, credit easing, the election result and rate reductions, in addition to Jubilee’s Price Protection and Builder Boost, it’s a great time to start actively looking for your new home.

To find out more about Jubilee’s current promotions, land for sale and everything it has to offer in Wyndham Vale, call William Agnew on 03 9684 8185 or head to our Sales and Information Centre at 39 Memory Crescent (Cnr Welcome Parade), open from 11am – 6pm daily.

Don’t forget to ‘like’ our Facebook page to keep up-to-date with everything happening at Jubilee and across the Wyndham community.

 

Written for Jubilee Wyndham Vale by Traffic. 

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