The Reserve Bank of Australia announced after their June board meeting they will cut the cash rate down to a record low of 1.25%. The two major banks who reacted the fastest was the Commonwealth Bank and ANZ.

The RBA’s announcement of a rate cut can help you buy your dream home

How does this affect the real estate industry? Well only good things- it will help the first home buyers reach the elusive goal of buying their first home- whilst you can also pay less for your mortgage. So, if you are working towards your deposit for your first home, here are some tips to be able to help save a little more in order to take advantage of the current finance conditions.

  • Create a budget and stick to it
  • To ensure you are saving money every pay packet- set up an automatic transfer on pay day to ensure that you are actually saving
  • Be careful not to spend on small miscellaneous items- like coffees as they can add up over time- up to $200 per month if you are buying a coffee every day!
  • Pay off your credit cards -as the interest on credit cards is a killer and such a waste of money
  • If you are a first home buyer, you could also be eligible for a government grant to help go towards your deposit

There can be many hidden costs associated with buying a house and moving in, here are our top three that tend to get over looked:

  • Stamp duty
  • Lenders Mortgage Insurance applies if you don’t have the full 20% deposit
  • Employing the services of a conveyancer/ solicitor to assist with your sale/ purchase.
  • Moving costs