We all heard the rumours late last year that we may see further interest rates cuts in 2013, but with a cash rate at just 3% already many Bacchus Marsh home owners thought this would be too good to be true.… well it turns out, it wasn’t! On Tuesday the RBA had their monthly meeting, and slashed a further 0.25 per cent from the already record low cash rate, while hinting at possible further cuts to come. This brings the cash rate to just 2.75 per cent.
When the rates dropped to 3 per cent it took most of the major banks several days to weigh up their next move, and in the end partial cuts were passed on. However, yesterday’s decision has already seen the Commonwealth Bank, Westpac, National Australia Bank and Bank of Queensland rush to pass on the full interest rate cute, with the ANZ to make their decision at their regular monthly review this Friday. We can only hope, for all Bacchus Marsh ANZ customers, that they make the same choice as their competitors have.
If you’re a Bacchus Marsh real estate owner on a variable mortgage, you have two options. Use the rate cut as an opportunity to get yourself out of debt by reducing your monthly/fortnightly payment to the minimum required and paying off those bills that have been piling up with the leftover cash, or if you’ve been paying your mortgage off relatively easily each month, why not continue to pay off your mortgage at the old rate and build yourself up a little equity?
One thing we do know for sure is that the rate cut will be a welcome relief for many Bacchus Marsh home owners, and will hopefully help a lot of Bacchus Marsh families get back on top of their finances.
How do you view the latest interest rate cut?