This is welcome relief for many, though some analysts say more rate cuts will be needed for those most at risk of mortgage stress.
Based on the 0.25 per cent rate cut, repayments on a $500,000 loan will drop by around $80 a month and repayments on a $750,000 loan will drop by $120, reports realestate.com.au.
The big four banks have all passed on the rate cut as have many others, but some lenders were dragging their feet, reports realestate.com.au.
While the cut helps many, for households in some areas, one rate cut is unlikely to go far enough to ease the cost of living pressures, Digital Finance Analytics (DFA) has told realestate.com.au.
It identified 35 Queensland suburbs where all households were in mortgage stress. DFA defines households in mortgage or rental stress as those that have more expesens than income.
“In some cases, the pressure is sufficient to force homeowners to consider selling up,” DFA found Martin North said.
“This includes some property investors too, which is one reason why listings are rising.
“Even a 50 basis point cut in mortgage rates would not be sufficient to solve their problem,” he said.
The worst affected suburbs in Queensland are Daisy Hill, Tanah Merah and Loganlea, it reported. Mortgage holders in Wakerley, Salisbury, Rosewood, Thorneside and Tully were also struggling with repayments.
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