The decision has been eagerly anticipated for quite some time and as of yesterday the RBA has announced the change of official cash rate for the first time in 18 months.
The cash rate has been dropped 25 basis points to record low of 2.25 per cent, which is expected to have a positive impact on the property market.
First home buyers and younger generations in particular should feel the relief having experienced the pressure of price growth in recent times and will now have the opportunity to access more affordable mortgages with many of Australia’s leading lenders already announcing they will be passing on the full benefit to their customers. The nation’s largest lender, CBA confirmed their fixed rate mortgages are now the lowest they have ever offered at only 4.69% and standard variable rate is down to 5.65%.
The cut is tipped to boost employment and stimulate the economy as well as escalate price growth as direct result of increased investor activity with potential capital growth making the property market even more appealing.