No change for Far South Coast homeowners with no change to the official interest rate.
The cash rate will remain at 3.85 per cent after this month’s meeting of the Reserve Bank Board.
Ben Bell from My Mortgage Mate in Merimbula said current owners wouldn’t have noticed too much difference if a cut had been made.
“The reality is the difference in affordability doesn’t make a large difference. On an average home loan of $500,000 the difference of a 0.25 rate cut is $70 to $90 but it dampens the confidence people are having,” he said.
Like many economists Mr Bell was shocked by the RBA decision.
“The big four banks had all been forecasting a quarter of a percent drop in the cash rate,” he said.
“Only last month NAB had called for a half a percent rate cut in the June meeting. They were forecasting a total of five rate cuts towards the end of this year.”
