Interest cuts welcomed
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.
Westpac Bank yesterday announced a 0.37% cut to its variable home loan interest rate.
This means three of the big four banks have now cut their rates following the Reserve Bank's decision on Tuesday to slash 50 basis points from the cash rate to 3.75%, but not one has passed it on in full.
The Commonwealth Bank announced on Thursday it was cutting its standard variable rate by 0.4%, while NAB passed on a 0.32% reduction and ANZ will decide next Friday.
The Bomans said the cut would help with everyday costs.
"We weren't really struggling before, but things were tight," Mrs Boman said.
"Now we will have extra money to put on the house. "This will definitely make things easier, especially with the cost of food and petrol going up."
Meanwhile, Tweed's business leaders have also urged banks to pass on the cut.
Tweed Chamber of Commerce president Rory Curtis said the change in the cash rate would not directly impact on people in Tweed.
"It's just not the demographic. Most of the people living on the Tweed are self-funded retirees or people on the pension," Mr Curtis said.
"What it will do is build some consumer confidence."
Mr Curtis said it would have been better for the bank to take baby steps to build up confidence.
"A 0.5% drop will cause excitement in the short term, but to build confidence it would be better to have consistent small cuts," Mr Curtis said.
Murwillumbah Chamber of Commerce president Toni Zuschke said businesses were in trouble and whole percentage cuts were required.
"The dollar just doesn't stretch," Ms Zuschke said.
"Businesses are discounting just to get a cut of the dollar, but that is unsustainable.
"I think they really need to do what they did in the 90s and slash it."
Interestingly, a poll on our website this week found that all who participated are unhappy with their home loans, with half shopping around for a better deal and the other half finding it too hard and costly to swap to a better mortgage.