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:
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