falling rates don't spur 1st time buyers
Home Loans The rate cuts are welcomed, understandably, by housing lobby groups. They say that a 1% or 100 basis point cut reduces by around $220, the monthly repayment on a $350,000 mortgage – a big saving for young Australian families.
Housing industry experts believe that rate cuts not only provide mortgage relief to existing home owners, but importantly they help more first home buyers purchase a home of their own. Substantial drops in falling rates don't spur 1st time buyers increase the borrowing capacity of entry level buyers.