Interest rate at record low

The Reserve bank of Australia (RBA) has today announced an interest rate cut to a record low 2.25%. The interest rate had been steady since July 2013 but industry experts had largely speculated that it would be cut this year, fantastic news for our investors, homeowners and the property and construction industry as a whole.

This move has been made to further stimulate business activity and household spending, with lowering the rate allowing the cost of consumer, housing and business credit to be lowered. Four C sees that the rate cut would boost the property market and activity, and in particular help investors and first-home buyers to cheaper mortgage rates.

Standard variable mortgage down to 5.7%, and the discounted variable rate to 4.85%, the lowest cost of mortgage debt since July 1968.