Reserve Bank of Australia cuts official interest rate 100 points to 3.25 per cent
09/12/2011 
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Mortgage Rates in Australia the lowest in 45 years.
Mortgage Interest rates are now at their lowest point in 45 years with the news that the RBA has cut the official cash rate 100 points this afternoon to 3.25 per cent per annum.
Westpac passes on the Full Rate Cut
Out of the big banks, Westpac has passed on the full 100 point cut to its standard variable home loans. Commonwealth, ANZ, NAB say rates are currently under review.
The Government said it expected economic growth to be just 1 per cent in 2008-09, slowing to a mere 0.75 per cent in 2009/10.
RBA governor Glenn Stevens said the board took into account the package of measures announced by the Government earlier today.
“The combination of expansionary monetary and fiscal policies now in place will help to cushion the Australian economy from the contractionary forces coming from abroad,” he said.
$166,000 average Monthly Mortgage Savings on a $254,000 mortgage
The one percentage point cut will save homeowners an average of $186 a month in mortgage repayments, depending on the size of their home loan and on the basis that their home loan is not a fixed rate mortgage loan . The nation’s banks with the exception of Westpac, had yet to announce any reduction in home loan rates, with most saying rates were currently under review.
This brings the total rate reduction a massive 400 basis points off mortgage finance by the Reserve Bank of Australia since September last year.
Rick Adlam has been helping clients with home loan finance since 1985 when he was home consultant with AV Jennings. Rick started Equity Home Loans in 1996 to help homeowners become property investors. Rick currently consults in the development of Mr Mortgage for mortgage brokers and HomeMate for new home buyers.
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