Derwent Finance founder and mortgage broker Emmanuel Marios. Picture: ROGER LOVELL

THE Reserve Bank of Australia’s latest interest rate cut — to a historic low of 0.75 per cent — came as no surprise to Derwent Finance founder and mortgage broker Emmanuel Marios.

In fact, Emmanuel expects there are more cuts to come.

“I reckon there will be another by Christmas this year, and maybe another after that,” he said.

“It’s hard to believe how low the interest rates are right now compared to how high they were for previous generations.

“For first-home buyers it is great news, because it helps them have the confidence to get into the market.

“Already we have seen a lot of the smaller lenders have dropped their rates dramatically, which will make them competitive when compared to the big four banks.”

Emmanuel Marios sees more cuts coming in the near future.

Emmanuel said some banks were offering first-home buyers incentives such as deposits that are below 5 per cent.

He said that while there were postcode restrictions on this type of offer, most of southern Tasmania was covered.

“With the huge rents that people are paying in Hobart, it makes it hard for first-time home buyers to save a deposit,” Emmanuel said.

He said when the news of an interest rates cut is announced, within an hour his phone runs hot with clients who have questions.

“Generally we will send out an email and fill people in on what their bank will be doing,” Emmanuel said.

Data from Finder has revealed that the number of Australians taking out fixed-rate loans had halved in the past two years.

Insights manager Graham Cooke said Finder’s RBA cash rate survey showed that most experts predicted the cash rate will reach 0.50 per cent before it starts to increase.

“Based on all the economic indicators the RBA reviews — employment, inflation, housing, wages — we are likely to be in a low-rate environment for the foreseeable future,” he said.

“Unless we see huge drops in fixed loan rates, variable loans will likely stay in vogue.”

Such a low rate leaves little wiggle room, says Mathew Tiller.

While he welcomed the official cash rate cut, LJ Hooker’s head of research Mathew Tiller said the 0.75 per cent rate left “little room” for further cuts if required.

“Given the muted economic effect of the last two rate cuts, the RBA will continue to push its message that more fiscal stimulus is required to boost economic growth — a call-out to the Government to reassess its expenditure,” he said.

Aussie Home Loans chief executive James Symond urged borrowers to review their rates.

He said if a lender doesn’t come to the party, a borrower should “get on the phone to your mortgage broker” to find a better deal.