Further Rate Cuts Could Further Help First Home Buyers
The Reserve Banks recent announcement to cut rates down to 1.25% included comments suggesting the possibility of further rates cuts likely if the economy does not show signs of improvement. This prospect creates more interest for first home buyers as lower interest rates mean lower repayments, making it more affordable to enter the property market.
Further decreases in rates may also result in lower fixed interest rates on 3- and 5-year terms. This allows first home buyers the option to lock in low rates for a good length of time providing stability and predictability in their home loans.