{"id":494,"date":"2020-03-10T07:52:09","date_gmt":"2020-03-10T07:52:09","guid":{"rendered":"https:\/\/opdsdemo.com\/buyerschoice\/?p=494"},"modified":"2021-12-20T15:40:12","modified_gmt":"2021-12-20T04:40:12","slug":"what-the-rba-rate-cut-means-for-mortgage-borrowers","status":"publish","type":"post","link":"https:\/\/buyerschoice.com.au\/what-the-rba-rate-cut-means-for-mortgage-borrowers\/","title":{"rendered":"What the RBA rate cut means for mortgage borrowers"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"494\" class=\"elementor elementor-494\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-ea60c39 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"ea60c39\" data-element_type=\"section\" data-e-type=\"section\" 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class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-281fc32\" data-id=\"281fc32\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-9ed4b0c elementor-widget elementor-widget-image\" data-id=\"9ed4b0c\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"768\" height=\"402\" src=\"https:\/\/buyerschoice.com.au\/wp-content\/uploads\/2020\/03\/rba-rate-cut-mortgage-768x402.png\" class=\"attachment-medium_large size-medium_large wp-image-6612\" alt=\"Piggy bank sitting in a house\" srcset=\"https:\/\/buyerschoice.com.au\/wp-content\/uploads\/2020\/03\/rba-rate-cut-mortgage-768x402.png 768w, https:\/\/buyerschoice.com.au\/wp-content\/uploads\/2020\/03\/rba-rate-cut-mortgage-300x157.png 300w, https:\/\/buyerschoice.com.au\/wp-content\/uploads\/2020\/03\/rba-rate-cut-mortgage-1024x536.png 1024w, https:\/\/buyerschoice.com.au\/wp-content\/uploads\/2020\/03\/rba-rate-cut-mortgage.png 1200w\" sizes=\"(max-width: 768px) 100vw, 768px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-b64913c elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"b64913c\" data-element_type=\"section\" data-e-type=\"section\" 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class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-8cea02b\" data-id=\"8cea02b\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-4b10fb6 elementor-widget elementor-widget-heading\" data-id=\"4b10fb6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What the RBA rate cut means for mortgage borrowers<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-15ea6197 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"15ea6197\" data-element_type=\"section\" data-e-type=\"section\" data-settings=\"{&quot;jet_parallax_layout_list&quot;:[{&quot;jet_parallax_layout_image&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;_id&quot;:&quot;5a3d342&quot;,&quot;jet_parallax_layout_image_tablet&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;jet_parallax_layout_image_mobile&quot;:{&quot;url&quot;:&quot;&quot;,&quot;id&quot;:&quot;&quot;,&quot;size&quot;:&quot;&quot;},&quot;jet_parallax_layout_speed&quot;:{&quot;unit&quot;:&quot;%&quot;,&quot;size&quot;:50,&quot;sizes&quot;:[]},&quot;jet_parallax_layout_type&quot;:&quot;scroll&quot;,&quot;jet_parallax_layout_direction&quot;:&quot;1&quot;,&quot;jet_parallax_layout_fx_direction&quot;:null,&quot;jet_parallax_layout_z_index&quot;:&quot;&quot;,&quot;jet_parallax_layout_bg_x&quot;:50,&quot;jet_parallax_layout_bg_x_tablet&quot;:&quot;&quot;,&quot;jet_parallax_layout_bg_x_mobile&quot;:&quot;&quot;,&quot;jet_parallax_layout_bg_y&quot;:50,&quot;jet_parallax_layout_bg_y_tablet&quot;:&quot;&quot;,&quot;jet_parallax_layout_bg_y_mobile&quot;:&quot;&quot;,&quot;jet_parallax_layout_bg_size&quot;:&quot;auto&quot;,&quot;jet_parallax_layout_bg_size_tablet&quot;:&quot;&quot;,&quot;jet_parallax_layout_bg_size_mobile&quot;:&quot;&quot;,&quot;jet_parallax_layout_animation_prop&quot;:&quot;transform&quot;,&quot;jet_parallax_layout_on&quot;:[&quot;desktop&quot;,&quot;tablet&quot;]}]}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-6ddc748a\" data-id=\"6ddc748a\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-74032f80 elementor-widget elementor-widget-text-editor\" data-id=\"74032f80\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\n<p>Interest rates have been slashed to a record low of 0.5%.<\/p>\n\n\n\n<p>On Tuesday, March 3, the Reserve Bank of Australia (RBA) cut the official cash rate from 0.75% to 0.5%, to try and contain the economic fallout from the coronavirus outbreak.&nbsp;<\/p>\n\n\n\n<p>The RBA has now cut interest rates four times within the past year.<\/p>\n\n\n\n<p>As a result of the cut, borrowers may be able to secure a lower interest rate on their home, investment property and small business loans.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Will the banks pass the RBA rate cut onto borrowers?<\/h3>\n\n\n\n<p>Prior to the RBA announcement, Prime Minister Scott Morrison urged Australia\u2019s major banks to pass on any cut in full to support the economy.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\u201cThere is no doubt that if the bank were to take a decision today on cash rates that the Government would absolutely expect the four big banks to come to the table and to do their bit in supporting Australians as we go through the impact of the coronavirus,\u201d he said.<\/p><\/blockquote>\n\n\n\n<p>Following the RBA decision, Westpac, Commonwealth Bank, National Australia Bank, ANZ and several smaller banks announced they would cut rates across some loan products.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How can borrowers take advantage of the RBA rate cut?<\/h3>\n\n\n\n<p>Eligible borrowers could potentially save thousands on their loan repayments as a result of the rate cuts.<\/p>\n\n\n\n<p>Some lenders are offering interest rates as low as 2.49% on owner-occupied, principal and interest home loans (comparison rate 3.89%).<\/p>\n\n\n\n<p>It\u2019s important to remember that eligibility criteria apply to mortgage and business loan products. So, even if a lender is advertising a low interest rate, that rate won\u2019t be available to you, unless you meet the lender\u2019s eligibility criteria.<\/p>\n\n\n\n<p>Also, some smaller banks have passed on the full rate cut, however in some cases only to new borrowers.<\/p>\n\n\n\n<p>When selecting a loan product, be sure to consider any fees that apply, and whether the loan includes all the features you need.<\/p>\n\n\n\n<p>It\u2019s wise to meet with a&nbsp;<a href=\"https:\/\/buyerschoice.com.au\/broker\/\">mortgage broker<\/a>. A mortgage broker will research which loan products will suit your needs and save you money. They\u2019ll also check whether you meet the lender\u2019s eligibility criteria.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Will the rate cut trigger a surge in home loan demand?<\/h3>\n\n\n\n<p>The property market is already running strongly in some states having bounced back from the falls experienced from late 2018 and through 2019. Property prices have continued to rise into 2020.<\/p>\n\n\n\n<p>However, there are concerns that fears around the coronavirus (COVID-19) could rattle market confidence, including the property market.<\/p>\n\n\n\n<p>So will the RBA\u2019s decision help mitigate this and trigger a surge in home loan demand?<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><a href=\"https:\/\/www.linkedin.com\/in\/brettmansfield\/\">Brett Mansfield<\/a>, Buyers Choice CEO commented: \u201cI expect the rate cut will have less impact than past reductions as people are concerned with the unknown impact of the coronavirus outbreak and are likely to use the savings to reduce existing debt until they regain confidence.&nbsp;This, however, is unlikely to stop the momentum which currently exists in the property markets and the rate cut will add further fuel to this activity.\u201d<\/p><\/blockquote>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\u201cThis cut to the official cash rate follows CoreLogic reporting a 1.8 per cent increase to Sydney\u2019s median house price to $1,001,357, while apartments rose 1.5 per cent to $763,962.&nbsp;At its current trajectory, house values now remain 3.7 per cent below the June 2017 peak, a figure the city could eclipse by the end of May and will return the market back to a high level of unaffordability.\u201d<\/p><\/blockquote>\n\n\n\n<p>If you\u2019re looking to buy a property or refinance your existing mortgage, now is a great time to research your options.&nbsp;Interest rates are at a record low, and although nationally property prices are rising, they still haven\u2019t reached their June 2017 peak.&nbsp;If you\u2019d like to explore how you can take advantage of the recent rate cut, please&nbsp;<a href=\"https:\/\/buyerschoice.com.au\/contact-us\/\" target=\"_blank\" rel=\"noreferrer noopener\">contact us<\/a>, to organise a chat with one of our&nbsp;<a href=\"https:\/\/buyerschoice.com.au\/broker\/\">experienced mortgage brokers<\/a>.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>What the RBA rate cut means for mortgage borrowers Interest rates have been slashed to a record low of 0.5%. On Tuesday, March 3, the Reserve Bank of Australia (RBA) cut the official cash rate from 0.75% to 0.5%, to try and contain the economic fallout from the coronavirus outbreak.&nbsp; The RBA has now cut [&hellip;]<\/p>\n","protected":false},"author":14,"featured_media":6613,"comment_status":"open","ping_status":"open","sticky":false,"template":"elementor_header_footer","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[9,225],"tags":[],"class_list":["post-494","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs","category-more-from-buyers-choice"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What the RBA rate cut means for mortgage borrowers - Buyers Choice<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/buyerschoice.com.au\/what-the-rba-rate-cut-means-for-mortgage-borrowers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What the RBA rate cut means for mortgage borrowers - Buyers Choice\" \/>\n<meta property=\"og:description\" content=\"What the RBA rate cut means for mortgage borrowers Interest rates have been slashed to a record low of 0.5%. On Tuesday, March 3, the Reserve Bank of Australia (RBA) cut the official cash rate from 0.75% to 0.5%, to try and contain the economic fallout from the coronavirus outbreak.&nbsp; The RBA has now cut [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/buyerschoice.com.au\/what-the-rba-rate-cut-means-for-mortgage-borrowers\/\" \/>\n<meta property=\"og:site_name\" content=\"Buyers Choice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/buyerschoicehomeloanadvisoryservice\" \/>\n<meta property=\"article:published_time\" content=\"2020-03-10T07:52:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-12-20T04:40:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/buyerschoice.com.au\/wp-content\/uploads\/2020\/03\/rba-rate-cut.png\" \/>\n\t<meta property=\"og:image:width\" content=\"560\" \/>\n\t<meta property=\"og:image:height\" content=\"315\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"it\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"it\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/buyerschoice.com.au\/what-the-rba-rate-cut-means-for-mortgage-borrowers\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/buyerschoice.com.au\/what-the-rba-rate-cut-means-for-mortgage-borrowers\/\"},\"author\":{\"name\":\"it\",\"@id\":\"https:\/\/buyerschoice.com.au\/#\/schema\/person\/79104b46f040a3b948b95e8275d6ceb2\"},\"headline\":\"What the RBA rate cut means for mortgage borrowers\",\"datePublished\":\"2020-03-10T07:52:09+00:00\",\"dateModified\":\"2021-12-20T04:40:12+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/buyerschoice.com.au\/what-the-rba-rate-cut-means-for-mortgage-borrowers\/\"},\"wordCount\":660,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/buyerschoice.com.au\/#organization\"},\"image\":{\"@id\":\"https:\/\/buyerschoice.com.au\/what-the-rba-rate-cut-means-for-mortgage-borrowers\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/buyerschoice.com.au\/wp-content\/uploads\/2020\/03\/rba-rate-cut.png\",\"articleSection\":[\"Blogs\",\"More from Buyers Choice\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/buyerschoice.com.au\/what-the-rba-rate-cut-means-for-mortgage-borrowers\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/buyerschoice.com.au\/what-the-rba-rate-cut-means-for-mortgage-borrowers\/\",\"url\":\"https:\/\/buyerschoice.com.au\/what-the-rba-rate-cut-means-for-mortgage-borrowers\/\",\"name\":\"What the RBA rate cut means for mortgage borrowers - 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