Whether or not you made a lucky bet at the races, Armidale homeowners all received some good news on Melbourne Cup day when the Reserve Bank announced that interest rates have been cut by 0.25 per cent.

The rate cut is the first rate movement that we have seen since this time last year, when the Reserve Bank decided to lift interest rates during the 2010 Melbourne Cup.

The official interest rate is now at 4.5 per cent and the average mortgage holder should save about $60 a month thanks to the cut.

But if your lender does pass on the rate savings, that doesn’t mean you should necessarily start paying less on your home loan each month.

If you have been comfortable paying the higher interest rate level then it is a good idea to keep paying the same amount, to help you get ahead on your home loan.

The rate cut should helpfully help provide the Australian property market with a much needed boost, as it may help to increase confidence amongst buyers.