Variable home loan rates to fall under 4.0%

The Reserve Bank of Australia has cut official interest rates by 0.25 percentage points to 2.0 per cent. This is a new record low setting for interest rates in Australia.

Retail variable home loan rates are expected to fall to below four per cent following the rate cut. Currently the lowest variable rates available are around the 4.20 per cent range. Average home owners could save as much as $1200 per year thanks to this rate cut.