Business

Pass on rates cut for families

West Tweed residents Jai, Mark, Michelle and Taj Boman say money has been "tight" at home and they're keen for the rate cut to be passed on.
West Tweed residents Jai, Mark, Michelle and Taj Boman say money has been "tight" at home and they're keen for the rate cut to be passed on. John Gass

WEST Tweed homeowners Mark and Michelle Boman welcomed the Reserve Bank's decision to cut rates this week, but now they want the banks to pass it on in full.

"This is great news and it's going to make a big difference too so many families," Mrs Boman said.

"This will definitely make things easier, especially with the cost of food and petrol going up."

Tuesday saw the RBA cut the cash rate by 50 basis points to 3.75% from the previous rate of 4.25%.

Homeowners with a $300,000 variable rate mortgage could now save up to $100 a month on loan repayments.

"We weren't really struggling before, but things were tight," Mrs Boman said.

"Now we will have extra money to put on the house and extra money to take our children overseas."

According to the Reserve Bank, housing prices have shown some signs of stabilising recently after having declined for most of 2011, but generally the housing market remains subdued.

The rates cut decision was based on information received over the past few months that suggests that economic conditions have been somewhat weaker than expected, while inflation has moderated.

Real Estate Institute of Queensland's CEO Anton Kardash believes the cut was done to influences on lenders.

"It is likely the Reserve has cut the cash rate by 50 basis points as a way of unwinding some of the independent increases by lenders as well as to ensure that a meaningful reduction is passed on.

"It is imperative that lenders pass on this rate cut in its entirety to help restore economic activity and confidence levels.

"Indeed, lenders' continual excuses about higher funding costs are not only starting to sound very stale but also increasingly self-interested," Mr Kardash said.

The big four banks have been tight-lipped on whether they will pass on the cut.

While ANZ said it would review its current rates on Friday, the Commonwealth Bank, Westpac and the National Australia Bank remained tight-lipped.

Treasurer Wayne Swan said that if Australians thought they were not getting a good deal from their current bank "they should walk down the road and get a better deal."

Topics:  interest rates, mortgage



The pacemaker cells of your gut

Restroom sign

Living Naturally: problems with the gut

Dunn eyes Millions for Group level push

TRAINING MASTERS: Matt and Keira Dunn at a Murwillumbah Racecourse race day.

Trainer eyes a cast of millions.

Pennant season out of sync?

SWING DOCTOR: Norman Carmichael, pictured with Julie Keegan, has sadly passed away.

Greg Kelly: On the mat.

Latest deals and offers

Tom Hiddleston's Instagram account hacked

Actor Tom Hiddleston

Thor star the latest celebrity targetted by hackers

Charlize Theron's son dresses up as Frozen character

Actor Charlize Theron

Star's son spotted dressed a beloved Frozen character

BOOKS: Food for thought in Caroline Beecham's latest novel

Maggie's Kitchen by Caroline Beecham is published by Allen & Unwin, RRP $29.99.

New novel reminds readers that bravery exists in many forms

TELEVISION: New show is a Survivor, for now

Jonathan LaPaglia hosts the TV series Australian Survivor.

WHAT happens when a new show with a big budget flops?

Rachel Weisz understands celebrity gossip fascination

Actor Rachel Weisz

Weisz says mystery is good for an actor

Gina Rodriguez relished dramatic change for new film

Jane the Virgin lead Gina Rodriguez

TV star shaved her hair for movie role

REVEALED: Pat Rafter's $18m Coast house on the market

Check out the photos of the Coast's most expensive property for sale

The "correction we had to have" in Gladstone's rentals

UPWARD MARCH: The rental vacancy rate in Gladstone has improved for the first time in more than a year, providing a confidence boost in the market.

Vacancy rates improve with signs that things are getting betterF

ISLAND FOR SALE: Cheap Fraser Coast island drops price again

Suna Island in the Great Sandy Strait will be auctioned by Ray White Hervey Bay on Saturday morning.

This is the cheapest island you will find for sale in Australia

How a family home can fit on a 250sq m block

This is what you can build on 250m2.

Here's the floor plan of a home built on 250sq m

Investors eye Gladstone's $4m island with resort approval

UP FOR SALE: Turtle Island is on the market.

CHINESE and Sydney investors flag interest in Gladstone island.

Take a sneak peek at this $19m Whitsunday mansion

Mandalay House features a private helipad.

Mandalay is currently on the market with an asking price of $19m