The mortgage industry has praised the RBA rate cut, saying it will provide a boost to the economy and comfort to stressed homeowners.
The Reserve Bank cut the official cash rate by 25bps, vindicating economists' speculation of a Melbourne Cup Day rate cut. Mortgage Choice spokesperson Kristy Sheppard said the cut would increased refinancing activity.
"Lenders are bound to use this opportunity to put themselves in the best possible position to attract new customers and keep their existing customers onboard. Borrowers should take the reins of their home loan and scout around for rate discounts, switching incentives and other offers, work with a mortgage broker to find a great product well tailored to their current rather than past needs, then see if the broker can negotiate them into a sweeter situation," she commented.
The Real Estate Institute of Queensland claimed the cut was "long overdue", and pointed to easing inflation data.
"Anyone working within the property industry in Queensland knew months ago that our economy was far from running away from us, which was contrary to the Reserve Bank’s assessment at the time," REIQ chair Pamela Bennett said.
Loan Market COO Dean Rushton said mortgage savings filtering through from the cut will aid families and businesses already struggling in a sluggish economy.
"The extra savings will help many families struggling with the increased cost of living and should result in retailers enjoying a better Christmas than they may have envisaged a few months ago," Rushton said.