The Reserve Bank of Australia has delivered a 0.25% cut to the official cash rate, reducing it from 3.85% to 3.60%.

For home buyers and mortgage holders, this offers some welcome relief. For self-funded retirees, however, the lower rate could mean reduced income from savings.

While many households may need the extra cash to cover rising everyday expenses, Buyer Solutions’ Janet Spencer urges borrowers to take a longer-term view:

“If you can afford it, direct the savings into your mortgage to reduce your loan balance faster.”

All eyes will now be on September to see the RBA’s next move.

For any advice on buying or selling property in Melbourne and Victoria, please contact Janet Spencer at info@buyersolutions.com.au and we will respond as soon as possible.