Banks must pass on RBA rate cut in full: Angus Raine

Angus Raine, the Raine & Horne estate agency chief, says banks, building societies and credit unions must pass on 100% of the rate cut to encourage buyers back into real estate markets around Australia.

“If a lender doesn’t pass on the full rate cut, home owners should consider shopping around for the most suitable mortgage,” he says.

Raine says the rate cut would help the property market claw back the two to three months lost as a consequence of the hit to confidence levels as a combination of the RBA’s decision to leave rates on hold since the end of 2011, along with the decision by lenders to independently increase rates, which had curtailed real estate market confidence since February.

“The rate cut will prove a significant boost to entry level markets in our capital cities and regional towns, and should encourage more first timers, carrying the weight of rising rents, to secure a home.

“It’s also fair to expect that the rate cut will tip those investors who have been sitting on the fence into an investment property,” Raine suggests.