How to spend that extra cash from the recent interest rate reduction
Interest rates go up and down, and depending on which stage of life you are in you may be happy or anxious when they change. If you have a home loan, the recent fall in interest rates was probably welcome news.
On 1 November 2011, the Reserve Bank of Australia (RBA) decided to reduce the official interest rate for the first time in 31 months. The RBA cut the official rates by 0.25% to 4.50%.
As a result, many banks have reduced interest rates on loans. If you have a mortgage with a variable interest rate this may have reduced the amount the bank requires you to repay each fortnight/month, leaving you with additional money to spend, pay off debt or save. (more…)
