Rate cut reduces number of "at risk" mortgage customers

Thursday 03 May 2012

Article by Mozo

The Reserve Bank of Australia's (RBA) decision to cut interest rates by 0.5 per cent could benefit thousands of mortgage customers across the country.

This is the view of Roy Morgan Research, which has conducted a study to assess the potential impact of the changes on people who have taken out a home loan.

It found that up to 64,000 Aussies who are currently "at risk" – meaning they cannot keep up with their mortgage repayments – will benefit from the readjustment.

Industry communications director at the firm Norman Morris said that homeowners in certain areas will be less affected than others.

"Victoria and Queensland would benefit the most from the full reduction in interest rates being passed on to home loan holders, followed by New South Wales and South Australia," he remarked.

However, these figures may need to be revised, as the majority of Australia's major banks have admitted that they are unlikely to pass the RBA's cuts on to their customers in their entirety.

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