Relief at last as interest rates fall
THE Reserve Bank of Australia will paint Mark Fraser and Stacey Carter's Goonellabah home.
Mr Fraser said the cut would slash their mortgage by $63 a month or about $750 a year, which they planned to spend on paint
The Reserve Bank's decision to cut the official rate to 7 per cent marks the first downward shift in rates in seven years. All of the big four banks moved quickly to pass on the rates cut.
“We have just bought a house,” Mr Fraser said. “We have a tenant in there helping us pay it off until December.”
Byron Bay resident Sue Johnson said the Reserve's decision had come just in time to save her house.
“Now I'll be able to take my house off the market as my budget wasn't allowing the constant mortgage increases,” she said.
“I borrowed $160,000 on a fixed interest rate and got a rude shock recently when it jumped to 9.5 per cent overnight. That meant more than a $50 a week rise in my repayments.”
Lismore Real Estate Principal Peter Butcher also welcomed the Reserve Bank's decision, but said rates were still too high and local families still under financial pressure.
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Families welcome interest rate cut.