Do you know how the cash rate affects your loan?
A survey of 1000 people by ME Bank found almost 40 per cent of participants don’t know how the Reserve Bank’s official cash rate affects mortgage repayments. The cash rate is set by the Reserve Bank of Australia and is currently at a record low of 2 per cent.
Generally, the lower the RBA’s official cash rate is, the lower interest rate borrowers pay on their variable rate mortgages.
Seventy per cent of young people under the age of 30 said they did know the cash rate.
Source: The Age