Property Insider
Email us: propertyinsider@echo.net.au
What is the cash rate? Here is some great information from Russel Shaw and Dai Walkley of Acceptance Finance: Many homeowners and investors have been rejoicing recently following the Reserve Bank of Australia’s (RBA) decision to cut the cash rate to an historic low of 0.75% last month. If you’re confused about what the cash rate is and how it affects your mortgage, you’re not alone. It was recently reported that 86 percent of Australians don’t know what the cash rate is. Let us explain.
What is the cash rate?
When the RBA changes the cash rate, there are economic ramifications. It can influence the interest rate on your mortgage, the amount of interest your savings might earn, as well as having other implications for consumer spending, investment, inflation (the increase in the prices of goods and services over time) and employment. When the economy is strong, the RBA might decide to raise the cash rate to ensure inflation stays within an optimal range (the current consumer price inflation target for Australia is between 2-3 percent, on average, over time). When the economy is weak, the RBA might lower the cash rate to stimulate the economy and encourage spending.
The cash rate is the interest rate on overnight loans provided to banks. Banks lend each other funds on an overnight basis to meet their daily cash needs ,and the cash rate is the interest rate they pay.
LşƱ Ďş ĈëƆIJ ſëƐĕ ĈƖƐƆ ëǔ ĕĈƐ borrowers’ wallets?
On the first Tuesday of every month, except January, the RBA board meets to set the cash rate and discuss monetary policy matters.
Banks take into account the cash rate when setting their home loan interest rates. A change in the cash rate may be passed on to variable
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rate mortgage holders – but not necessarily. Those on fixed rate loans will not be impacted.
competitive. That’s what Acceptance Finance is here to do.
For borrowers whose banks do pass on cash rate cuts, it can mean big savings. Even small interest rate changes can result in large reductions to home loan repayments and sizeable savings in interest over the course of the loan.
Russel and Dai say that as mortgage brokers they are here to provide you with the education and support you need throughout your property buying and ownership journey, so if you are unsure of anything, please just call
If you’re a new borrower, the cash rate cut means we may be able to find you a more competitive mortgage than in the past.
Why it’s a good time to consider ſĕǕ ŕëŕĈĶŕī So far this year, there have been three cash rate cuts from the RBA. Some banks have passed on bigger rate cuts than others, so if you have had your mortgage for some time it could be worth reviewing it. Start by checking if your lender has passed on the recent rate cuts. Better yet, have us check that for you! Next, have a chat with your broker to see whether your current interest rate is still
‘Cedar House’
Dai Walk ley
Prime Mullumbimby position
23 Palmer Avenue, Ocean Shores 140 Dalley Street, Mullumbimby 35A Argyle Street, Mullumbimby $1,280,000 – $1,400,000 $1,900,000 to $2,050,000 Vacant block 4 2 2 5 3
Delivering sweeping ocean views with a sundrenched north aspect, this architecturally designed residence offers a masterclass in contemporary style and effortless functionality in a prized location. Its sophistication is derived from the simplicity of its striking forms – bold, clean lines are combined with a palette of natural textures and materials to create an elegant family home with a beautifully modern aesthetic. Spanning multiple levels, the main floor provides dual living zones with a seamless progression from the interior spaces to the north facing, sunny deck and child-friendly lawn. The fluid, open design is anchored by a designer kitchen with stainless stone benchtops and quality appliances. Sliding stacker doors frame the spectacular views to the ocean including Cape Byron and a front row view of migrating whales. Thoughtfully arranged, the floorplan provides ideally for a family – the huge master retreat enjoys fabulous ocean views with a private terrace and chic bathroom. Inspect: by appointment Contact: Todd Buckland – 0408 966 421 Byron Shire Real Estate
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Built in 1908 this beautiful example of Edwardian architecture steeped in local history is one of the most beautiful period homes in the region. The architectural integrity of the house has been preserved and it retains all its original character and grace. There are 4 generous bedrooms, the most generous featuring an ensuite, 2 fireplaces, original safe and built in robe. The quality and craftsmanship built into the home is amazing. Coveted local Red Cedar was used extensively throughout the home (hence the name), including all doors, windows, cabinetry, and decorative features. There are ornate pressed metal ceilings to die for, a total of four fireplaces, and timber floors in every room. Gorgeous Art Nouveau leadlight windows and panels also feature around the home. Register your interest for this rare property. Agent declares interest.
Inspect: By Appointment only Contact: Todd Buckland – 0408 966 421 Byron Shire Real Estate
Russel Shaw
$425,000
Don’t miss this opportunity to invest in one of the few vacant lots within walking distance of the Mullum CBD, complete with rear lane access. This is a newly created lot and rarely do blocks of land of this calibre come onto the market. • Approx. 440 sqm block on Torrens title. • Level, newly created, north-facing block with rear lane access. • Walking distance to town centre, schools and shops. • 10% deposit with balance paid on title registration in early 2020. Build your dream home and become part of the beautiful community of Mullumbimby. Be quick, this opportunity won’t last!
Open: Saturday 30 November: 10.30 – 11am Contact: Daniel Harper 0405 459 565
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