Desperation turned to jubilation for cash-strapped Australian families after major lenders indicated they would pass on most of the Reserve Bank's interest rate cut.
Westpac was the first bank to announce the reduction, pledging to lower its standard variable home loan rate by 0.8 percentage points with the three other big banks delivering the same discount during the afternoon.
Mortgage broking network Aussie Home Loans also promised a cut of 0.75 points.
For families, the result represented a stunning -- and desperately-needed -- reversal of fortune, with the cut translating to a $273 reduction in monthly repayments on a $500,000 mortgage.
Mother-of-two Suzanne Andrews, from Lalor Park in Sydney's west, said her family's home loan repayments had increased by more than $65 a week over the past two years, with their bill now totalling more than $2000 a month.
Despite remortgaging two years ago, she and husband Mark had been forced to take drastic action to ensure the household budget balanced.
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