Interest rates haven’t been as low as this since I was a child

It's old news now - the RBA dropped official interest rates rates for the second month in a row

But did you know the variable home mortgage rates has not been as low as this since around 1958.

I was 6 years old then and at the time the average price of a home in Melbourne and Sydney was the equivalent of $7,000 (we were still using pounds, schillings and pence.)

Our prime minister was Sir Robert Menzies (just Bob in those days).

Since then the average Sydney house price has increased by around 142 times to about $1 million. and

The Australian Financial Review ran the following graph which shows how variable mortgages peaked in the early 1990s at about 18 per cent before sliding back to historic lows today.

While not all banks will pass on the full rate cut, RateCity estimates the impact of the rate cut could be as follows:

About Michael Yardney Michael is a director of Metropole Property Strategists who help their clients grow, protect and pass on their wealth through independent, unbiased property advice and advocacy. He's once again been voted Australia's leading property investment adviser and one of Australia's 50 most influential Thought Leaders. His opinions are regularly featured in the media.