The Reserve Bank of Australia


PHOTO: The interest rate cut will help sure up markets impacted by rising housing stock.

Home loan customers may save about $600-$1000 a year in mortgage repayments thanks to today’s landmark rate cut by the Reserve Bank but homeowners will get other bigger benefits too.

The Reserve Bank of Australia’s decision to introduce another interest rate cut will deliver homeowners an array of benefits extending well beyond monthly savings on their mortgage repayments, experts claim.

The RBA announced at its monthly board meeting Tuesday that the cash rate would drop another 25 basis points to a record low of 1 per cent.

This would save the average home loan customer about $600-$1000 a year on their repayments if banks passed the savings on in full.

MORE: Sydney prices grow for first time in two years

Auction market beginning to recover

And while households would no doubt welcome the reduced payments, real estate commentators said lower rates would offer homeowners additional support by propping up the housing market.