Ripples continue from cash rate cut for residential property
Further to the decision by the Reserve Bank of Australia (RBA) to lower the cash rate from three per cent down to 2.75 per cent, industry players and banks are reacting with repercussions for the residential property market.
Reactions to the drop have been positive from housing industries and several banks have already dropped their variable home loan interest rates in kind, which is positive news for anyone looking at buying a house.
The Housing Industry Association (HIA) has responded by saying that the drop will boost prospects for further construction of residential properties.
HIA chief economist Harley Dale said: "Today's move is therefore welcome news for the industry and a prudent decision by the RBA."
After several banks such as the National Australia bank, ING Direct, St. Georges and the Bank of Melbourne all dropped their variable home loan rates, more financial institutions are also passing their savings on to homeowners.
The People's Choice Credit Union announced it will lower rates by the full 25 basis points down to 6.12 per cent effective from May 24, and ANZ has decided to lower its rate by 0.27 per cent, effective from May 17.