Mortgage holders face anxious wait on interest rates
Mortgage holders face an anxious wait to see if their lender will pass on the savings from this week's national interest rate readjustment.
The Reserve Bank of Australia (RBA) has opted to cut the cash rate by 25 points to just 3.25 per cent, which should in theory provide significant relief to home, business and personal loan customers.
However, the Herald Sun reports that there is no guarantee that the country's major banks will follow the RBA's lead by trimming their interest rates.
Although it is still early days, none of the major banks have yet announced plans to pass the reduction on to their customers.
Choice chief executive Alan Kirkland told the news provider: "Australia's major banks are at near-record levels of profitability, and this is no time for them to be clipping the ticket on interest rate cuts."
If the changes are made, the repayments on an average $300,000 mortgage will fall by $50 a month, which could be a godsend for many households in these austere times.