The official cash rate was cut on May 3, after the Reserve Bank of Australia (RBA) decided that the reduction would ease pressures on the national economy.
What a lowered cash rate means is that lenders and banks don't pay as much interest on their borrowing from the RBA. This could translate into savings for customers, as Housing Industry Association Senior Economist Shane Garrett suggests:
With better access to mortgages, could it be time for you to design your own home?
"On previous occasions, the main banks have failed to fully share the benefits of lower rates with their mortgage borrowers. We trust that such mistakes will not be repeated on this occasion. Housing affordability remains very challenging, and homeowners deserve to receive their fair share of [the] rate cut."
So, with better access to mortgages, could it be time for you to design your own home with G.J. Gardner Homes? Your dream might be just around the corner - and the RBA's decision is the first encouraging step.
How could home buyers benefit from the cash rate cut?
One of the first things that home buyers consider when they're deciding on their next move on the property ladder is how much they can afford. With the cash rate cut, there is a chance that banks and lenders will reduce interest rates they charge to customers, meaning more access to higher home loans.
This will open up a whole world of what buyers can afford, and with the many home designs that are on offer here at G.J. Gardner Homes, there's sure to be something to interest you.
In line with the changes that have been made to the cash rate, it may be time to have a look at reviewing your existing home loan plan, according to Macquarie.
What does it mean for those in the market?
There's so much value in designing your own home - you can make all the changes and decisions you need before the building even begins. No renovations required.
"Median house prices across Melbourne are considerably lower than in neighbouring Sydney, offering buyers strong opportunities, even in the current market," said Real Estate Institute of Victoria (REIV) President Geoff White.
"First home buyers, in particular, will benefit from [the] decision if the four major banks pass on the full rate cut."
Do you want to make the most of the current cash rate position before the housing market becomes even more unaffordable? G.J. Gardner Homes is here to help with its many, many housing options. Get in touch!