Melton 
The who’s who of the Australian financial world knew it was coming, but the big surprise for average homeowners is just how much today’s interest rate cut could save them.
For almost three years, the Reserve Bank of Australia (RBA) has kept the official cash rate at 1.5 per cent, but in a widely-predicted move, that was dropped to 1.25 per cent.
Graham Cooke, insights manager at finder.com.au said he anticipates that the average Australian home loan size, which currently sits at $384,700 according to the ABS, will now increase following the rate cut, especially if past consumer behaviour is anything to go by.
“The average home loan size increase following the last 10 rate cuts was 1.3 per cent. This could add almost $5000 to the average size of home loans nationally,” Mr Cooke said.
Five things to consider when buying into a regional area
Borrowers can take action by taking matters into their own hands and getting a better deal on their existing home loan.
All eyes will be on the big banks this week to see how many of them will pass on the cut. Within two hours of the RBA’s decision, the Commonwealth Bank announced its intention to reduce its rates by 0.25 per cent.
