RBA decision a win for WA home buyers

REIWA welcomes the Reserve Bank of Australia (RBA)’s announcement today to cut cash rates from 1.5 per cent to 1.25 per cent and strongly encourages all lenders to pass this on to their customers. 

REIWA President Damian Collins said this is a significant win for WA’s struggling real estate industry, one which will reduce financial pressures for current home owners and attract new home buyers to enter the market. 

“By banks passing the full cut on to their customer’s home loans, borrowers can expect for each $100,000 borrowed, annual payments will decrease by $250, making it more affordable to hold on to properties. For current home owners this will help people stay on top of mortgage repayments and also lower cash out of pocket expenses, which will mean more money to spend in other areas that will help boost the economy, or pay down existing debt.

“With the number of first home buyers decreasing nationally by 19.7 per cent in the first quarter this year, the RBA cuts as well as the proposed APRA changes to servicing rates, the Federal Government's proposed first home loan guarantee scheme, and recent Keystart changes will all make it easier for first home buyers to get into the market.

“With more West Australians able to access home loans, property investment and home ownership, it is now becoming more affordable, which should help stimulate our local property market. We are already starting to see signs of this with an increase of 14 per cent in sales activity since the election – a shift we are keen to see grow momentum in the second half of 2019,” Mr Collins said. 

For more information about REIWA's advocacy efforts, visit our advocacy page.