Australia’s economic landscape is shifting once again. With the Reserve Bank of Australia (RBA) announcing its second interest rate cut in this cycle, it's crucial to understand how this move affects your finances—whether you're a homeowner, investor, renter, or retiree. Mortgage Relief for Homeowners—But It’s Not Universal If you’re paying off a mortgage, the rate cut offers welcome relief. Following years of steep rate hikes aimed at curbing inflation, the RBA’s latest 25 basis point reduction will ease monthly repayments. For example: On a $500,000 mortgage , repayments could drop by $80–$100 per month. On a $1 million loan , the monthly saving may be $200–$250 . However, not all Australians will feel this benefit. Roughly a third of households own their home outright, and another third rent. For renters and non-borrowers, the picture is more complex—and potentially less favourable. Cheaper Credit and the Sharemarket: A Delicate Balance Lower interest rates of...
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