Following last month’s shock hold, find out, in this special announcement from Legal Home Loans, if the Reserve Bank of Australia has decided to raise, hold, or cut interest rates at its second meeting of the new financial year.
In its July meeting, the board of the Reserve Bank of Australia decided to hold the cash rate at 3.85 per cent. Today, it has cut the cash rate by 0.25 per cent, bringing it to 3.6 per cent.
In a statement, the board said: “Inflation has fallen substantially since the peak in 2022, as higher interest rates have been working to bring aggregate demand and potential supply closer towards balance. In the June quarter, trimmed mean inflation over the year fell to 2.7 per cent, broadly as expected in May.
“Headline inflation, which has partly been affected by temporary cost-of-living relief measures, was 2.1 per cent, also as forecast. Updated staff forecasts for the August meeting suggest that underlying inflation will continue to moderate to around the midpoint of the 2–3 per cent range, with the cash rate assumed to follow a gradual easing path.”
In conversation with Lawyers Weekly, Legal Home Loans director of sales Cullen Haynes said that the RBA’s cash rate cut is welcome news for mortgage holders and prospective buyers.
“As banks pass on the rate cuts, those on a variable home loan set-up will see their monthly interest repayments decrease. If you haven’t received a reduction in your repayments from the May cash rate cut, make sure to get in contact with your lender or broker as soon as possible,” Haynes said.
“With three rate cuts now in place, it’s an ideal time to review your home loan and explore refinancing. The current average interest rate range for owner-occupied loans [is] now 5.0 per cent to 5.9 per cent, and there may be something better for you than your current product in the market.”
“If you’re considering purchasing a property, now is a good time to get your pre-approval in place. With three rate cuts, your borrowing power may have increased, potentially expanding your options in the market. Having pre-approval ready ensures you can move quickly when you find the right property.”
“Don’t forget, legal professionals can access certain market advantages, such as home loans with just a 10 per cent deposit and waived lenders mortgage insurance. These benefits can make entering the property market more attainable and realistic for the cohort. It’s best to speak to a specialist broker for lawyers to gauge what’s best for you.”
Jerome Doraisamy is the managing editor of Lawyers Weekly and HR Leader. He is also the author of The Wellness Doctrines book series, an admitted solicitor in New South Wales, and a board director of the Minds Count Foundation.
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