Mortgage holders get a break

First home buyers may be pleased to hear that the Reserve Bank of Australia (RBA) has decided to cut the interest rate, with a number of major banks following suit.

As such, many consumers may be able to get a cheaper deal on both fixed and variable rate mortgages.

Commenting on the decision, Christopher Zinn, spokesperson for the consumer group Choice’s, said it was “terrific” news for first home buyers.

“After what seemed a Mexican standoff as to who would do what and when, the banks have moved as consumers hoped they would,” he told the Age.

The paper pointed out that after the reduction, homeowners can expect to pay around $40 less on interest payments.

It is the first time the RBA has decided to relax the rate in almost seven years.

The last time it did so was back in December 2001. Since then, it has increased interest rates a total of nine times.ADNFCR-1761-ID-18760509-ADNFCR