Interest rates lower today

[RetardedMonkey]

2.75%

Already had two idiots tell me how much cheaper their mortgage is now.

 

[sammysilver]

2.75%

Already had two idiots tell me how much cheaper their mortgage is now.

I think 1/3 the population have mortgages, 1/3 have savings, and 1/3 have SFA. So we pander to a minority!

My take now is the AUD will go down a bit, PM's will go up slightly, the banks will drop savings accounts to bugger all, and we'll go on pontificating.

 

[Jislizard]

Sweeeeet! Now my mortgage is even cheaper!

 

[aleks]

Source: daily telegraph

When you're alone and life is making you lonely
You can always go - downtown
When you've got worries, all the noise and the hurry
Seems to help, I know - downtown

 

[alexisio]

If only the banks pass it on

 

[aleks]

I think I just heard NAB and BOQ just passed it on

 

[hiho]

sweet the mortgage I am about to get into is cheaper :lol:

 

[Yippe-Ki-Ya]

You're a banker - don't you just create the currency out of thin air anyway? :lol:

 

[DanielM]

Yes how lucky am I!!!! I'm 24, homeloan gets cheaper, only investment is 20k in super, so not really worried about getting undermined by lower rates.

But I do feel sorry for people with bigger investments and people who have to live off their savings at this point in time, but doesnt lower rates also put an upward pressure on house prices? Isn't it ment to promote growth by making lending cheaper for businesses?

What other good and bad does lowering interest rates do?

 

[hawkeye]

Virtually no room to move now. And supposedly all is well with the Australian banks and financial system....

What other good and bad does lowering interest rates do?

Artificially moving rates is always just robbing Peter to pay Paul. There is no net gain or loss. Some win at the expense of others.

 

[lamp]

I am no expert in the property market, but saw that whenver there is an interest rate drop, the price of property would go higher, so it kind of offset the drop! Not good for new entrants!

 

[hem9]

Sweeeeet! Now my mortgage is even cheaper!

+1

 

[willrocks]

I am no expert in the property market, but saw that whenver there is an interest rate drop, the price of property would go higher, so it kind of offset the drop! Not good for new entrants!

But the payments stay the same! And we all know having affordable payments is the most important thing when considering a 30 year mortgage. /sarcasm

 

[willrocks]

Wayne Swan is milking it for all it's worth on twitter:

A family on a $300K mortgage will pay around $5,500 a yr less in repayments compared to what they paying when the Libs left office

Today's Reserve Bank decision to cut rates means interest rates are now even lower under Labor

There I fixed it for you Swanny:

A pensioner living on fixed interest from $300K will receive around $5,500 a yr less in interest compared to what they received when the Libs left office

 

[hawkeye]

^ Not only that it also reduces the value of the Aussie dollar so anything the pensioner buys that is imported now costs more.

 

[errol43]

Rob Peter pay Paul...It's all a game.

Regards Errol 43

 

[hawkeye]

Sweeeeet! Now my mortgage is even cheaper!

And the value of your house will go up.

Maybe....

 

[hem9]

Sweeeeet! Now my mortgage is even cheaper!

And the value of your house will go up.

Maybe....

more than maybe, when interest rates go down = mortgage cheaper + rent stays the same = more attractive for first home buyers and investors.

 

[hawkeye]

Sweeeeet! Now my mortgage is even cheaper!

And the value of your house will go up.

Maybe....

more than maybe, when interest rates go down = mortgage cheaper + rent stays the same = more attractive for first home buyers and investors.

Yeah, but there comes an end point, where pushing down interest rates stops working.

 

[Caput Lupinum]

Hooray! Let's all go out for some chocolate frosty milkshakes, my treat as my mortgage is cheaper.