Families welcome interest cut
TOOWOOMBA father-of-two Nathan Mulligan says the Reserve Bank's decision to cut interest rates by 25 basis points to 4.25 per cent is a welcome early Christmas present.
As the sole wage earner in his family, it also eases the financial burden on Mr Mulligan and his wife Jennifer, allowing them to pay off their loan 10 months earlier.
Mr Mulligan said he intended to continue with mortgage repayments of $700 a fortnight on his $208,000 loan, potentially saving $14,000 in interest owed if the rates cut is passed on.
"Ultimately it will see us pay off our loan a lot faster. The house will be ours a lot quicker," he said.
For other Toowoomba families on variable-rate loans, Mr Mulligan says an interest rates cut means less pressure at a tough financial time of year for household budgets.
"A lot of financial budgets are going to be much looser, for them it's going to mean fewer money woes," he said.
Aussie Home Loans Toowoomba principal Andrew Harvey said the interest rates cut will lead to increased consumer confidence.
"Toowoomba will also benefit with a flow-on effect in the real estate market in the new year as people feel further confidence to buy and sell or simply look to refinance their existing home loan to a much better rate," he said.
Bank of Queensland was the first bank to pass on the rates cut yesterday, passing on the full cut of 25 basis points.
Does the interest rate cut make you more confident in purchasing a home?