Last week as the reserve bank reduced interest rates by 0.25% for the second consecutive month, the ramifications for the Australian household became real.
Some Australian bank lenders have passed on the rate cut whilst other have not. However, for many Australian families post the Global Financial Crisis (GFC) who fixed their mortgages in fear of future rate rises will bring about no relief through this announcement.
Whilst this rate cut will save an average of $50/month for homeowners who are eligible, many banks only passed on part of the cut.
Craig McAllister, Projects Manager for MIDLAS believes; “as Christmas approaches; mortgage repayments, increased cost of living, presents to buy, turkeys, to be basted and school holidays become a harsh reality. Many families, low and middle income earners feel the strain throughout the summer break.”
If you are facing difficulties this summer, please contact MIDLAS to make an appointment with a financial counselor on 9250 2123. Or visit our website: www.midlas.org.au