The Reserve Bank of Australia's (RBA's) decision to cut the country's interest rates could be welcome news for first-time buyers, the Real Estate Institute of Australia (REIA) has said.
Pamela Bennett, the organisation's acting president, supported the RBA's move and suggested it could provide home buyers with the help they need to step on to the property ladder.
The decision comes after REIA June quarter figures revealed dwelling owners were contributing 34.6 per cent of their monthly income to loan repayments, while the rate cut will reduce this to 33.8 per cent.
According to the findings, the average Australian mortgage holder will reduce their mortgage payments from $2,237 (£1,449) to $2,187, a saving of $50 per month.
Ms Bennett commented: "REIA is pleased the RBA has listened to industry concerns and has been pre-emptive in the current outlook for the Australian and global economies and cut interest rates."
Last month, the REIA called for the abolition of stamp duty on residential and commercial properties in a bid to improve housing affordability.
Posted by Ravin Chatlani
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