Home loan repayments "down $300 by March"

Thursday 13 November 2008

Article by Mozo

Average monthly home loan repayments could fall as much as $300 by March of next year, one money expert has enthused.

Talking to news.com.au, Alan Oster, chief economist at NAB, said that by March, the market could be awash with low-interest home loans as the Reserve Bank makes a series of cuts to the base rate.

He expects that over the next four months, the Reserve may well bring the base rate down to 3.75 per cent, knocking off 150 basis points in a series of cuts.

In such a scenario, typical borrowers would see $287 sliced off their monthly home loan repayments.

The news comes as the prime minister affirmed his commitment to going to war against unemployment.

He insisted: “The government remains determined to take whatever action is necessary for the future in order to support the economy, to support growth and to support jobs.”

At this month’s meeting, the RBA cut 75 basis points off the base rate, bringing it down from six per cent to 5.25 per cent.ADNFCR-1761-ID-18875042-ADNFCR

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