Record low interest rates provide boost for first home buyers

Date: 3 May 16

The REIV has welcomed the decision to lower the RBA cash rate by 25 basis points to a record low 1.75 per interest-rate-cut.jpgcent – boosting confidence in the market and helping buyers gain a foothold on the property ladder. 

REIV President Geoff White said the Victorian property sector will benefit significantly from the decision.

“Median house prices across Melbourne are considerably lower than in neighbouring Sydney, offering buyers strong opportunities, even in the current market,” he said.

“First home buyers, in particular, will benefit from today’s decision if the four major banks pass on the full rate cut.”

Mr White added that today’s decision will further boost confidence in the property sector. 

“Buyers currently have access to the lowest interest rates in the nation’s history, providing much needed assistance to first home buyers.”  

Three of the major banks have already indicated they will pass on the rate reduction to its customers, he said.

“We encourage all the banks to follow suit and deliver an optimal setting for Melbourne home buyers,” he added.