Kochie’s property update: Your variable home loan mortgage rate should start with a “2”

Almost 50 lenders have announced variable rate cuts, following Tuesday’s RBA decision to cut official interest rates by 0.25 per cent.

It was good to see all four major banks cut their variable mortgage rate by the full amount. But make sure you, as an existing borrower, benefit from the cut and not just new customers.

As a general rule of thumb if your variable interest rate home loan doesn’t start with a 2… as in 2.something per cent…then you need to ask your bank why not.

Residential property prices stay solid

The CoreLogic Home Value Index of national home prices rose by 1.1 per cent in February to stand 6.1 per cent higher over the year.

In capital cities, prices rose by 1.2 per cent to be up 7.3 per cent over the year to February. House prices rose by 1.2 per cent and apartment prices also lifted by 1.2 per cent. House prices were up 7.5 per cent on a year ago and prices of apartments increased by 6.9 per cent.

Home prices were higher in seven of the eight capital cities in February.

While prices were up in six of the eqight capital cities for the year to February. Prices rose the most in Sydney (up by 10.9 per cent), followed by Melbourne (up by 10.7 per cent), Hobart (up by 5.0 per cent), Canberra (up by 4.1 per cent), Brisbane (up by 1.9 per cent) and Adelaide (up by 0.4 per cent). But prices were down in Darwin (down by 7.8 per cent) and Perth (down by 4.0 per cent).