How some Australians will save THOUSANDS during the coronavirus pandemic thanks to one very welcome silver lining
- Australian interest rates will remain at a record low for at least three years
- Prime Minister Scott Morrison announced the positive COVID-19 news on Friday
- Australians will be able to pay off debt faster or purchase homes at lower prices
- The Reserve Bank of Australia encouraged people to find the best loan rates
The coronavirus pandemic will allow some lucky Australians to save thousands of dollars thanks to record low interest rates acting as a silver lining for homeowners and those in debt.
Prime Minister Scott Morrison predicted homeowners would be able to benefit from these record low rates for at least three years.
The silver lining was revealed after a discussion with the Reserve Bank of Australia's Governor Philip Lowe in a national cabinet meeting on Friday.
'With rates low and expected to be low.... we could expect them to be for at least three years, if not more, which is what Dr Lowe told us this morning,' Mr Morrison said.
Prime Minister Scott Morrison (pictured above) revealed on Friday that Australia would see record low interest rates for at least three years thanks to the coronavirus pandemic
The Reserve Bank of Australia's Governor Philip Lowe encouraged Australians to negotiate with their banks and find the lowest home loan rates (pictured, homes in Melbourne)
The meeting was also joined by Treasury secretary Steven Kennedy and aimed to review Australia's economy in a post-coronavirus world.
The record low interest rates reflect a surge in unemployment and economic trouble that has been brought on by the pandemic.
But they also hold an opportunity for Australians with stable incomes to pay off their debts faster, purchase property at a reduced rate and keep mortgage repayments low.
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The RBA's historically low rate has been set at just 0.25 per cent and dramatically decreased interest rates on variable and fixed rate mortgages.
Dr Lowe has encouraged home loan borrowers to take this unique opportunity to refinance and find a better deal during the COVID-19 pandemic.
'I encourage people who haven't already taken up the opportunity to do that to look at their mortgage rate and look for a better deal,' he said.
Australians (pictured, Melbourne on Monday) who own homes will benefit from these lower rates thanks to decreased home loan interest and lower property prices
Dr Lowe has suggested homeowners should scrutinise their rates, ask for a better deal or potentially move to a different bank.
The RBA also urged Australia's states and territories to take advantage of the lower rates and borrow money from the federal government.
The prime minister said they government was encouraged to spend on infrastructure programs in order to help kickstart the economy.
'As I've noted before, the level of Commonwealth investment in fiscal intervention in this crisis is well over 15 per cent of our economy,' Mr Morrison said.
'But the Reserve Bank Governor called on the states and territories today to lift their fiscal investment over the next two years.'
Mr Morrison also labelled unemployment as Australia's 'number one economic issue' to come out of the pandemic.
'With unemployment expected to be at a measured rate of over seven per cent over the next two years, jobs is the issue,' he said.
Daily Mail Australia has contacted the Reserve Bank of Australia for comment.
Unemployment has risen to 7.5 per cent thanks to the coronavirus pandemic.
It was estimated more than one million Australians were unemployed in early July, up by nearly 16,000 people since June.
This pushed the national unemployment rate to its highest level since November 1998.
The pandemic prompted a recession, with economic activity halted.
Sending the country into lockdown has caused a vicious cycle of closing down workplaces and limiting economic activity, reducing the ability of Australians to earn and spend money.
Australia has reached 7.5 per cent unemployment levels, the highest rate seen since 1998 (Centrelink queue at Southport on the Gold Coast in March pictured)
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