WOWZA! We have hit a new record!
Yep today the Reserve Bank of Australia decided to cut the official 2% cash rate by 25 basis points to a new record low of 1.75%!!
The RBA decided to react in response to low inflation figures and a strengthening Aussie dollar it tool many official forecasters and economist by surprise! Many now predicting another cut in the immediate future is highly unlikely, with the RBA likely to reserve this option in case it feels the economy requires further stimulation moving forward. Check out our article explaining inflation and how it affects your back pocket.
What does this actually mean to you? OR What does this actually mean to the average home owner or property investor in terms of cash?
A 0.25% rate drop equates to a monthly interest saving of approx. $93.75 and annually of $1,125 on a mortgage of $450,000. This saving could assist in covering property management expenses or personal expenses (Yes, it could even help pay for a date night once a month. Happy Wife = Happy Life!).
We have already seen lenders reducing interest rates, particularly on variable interest rate products for owner-occupier purposes.
Overall, this is awesome news for property owners and buyers across the country.
With property markets performing well, there is plenty of housing stock available to buyers combined with seeing rate cuts across other loan products.
We expect lower interest rates will stimulate the market even further, so talk to us about getting your finance in place now!
If you already have a home loan, please remember that when rates are on the move, it’s wise to revisit what your current rates are to ensure you’re still getting the best deal available for your needs.
So if you are looking to refinance, fix your interest rate or invest, Loop in with us and we’ll find the most competitive product for your needs.
For anyone considering to get into the property market (without a finance pre-approval), now is the time to start seriously looking at your finance options and what may be possible. For those of you who may have a bank pre-approval already in place, it may be time for you get a 2nd opinion!
Anyone who has a current mortgage or investment loan, now may be a great time to review your current interest rate to what your bank decides to pass on and what the other may be offering.
Of course, we are quite experienced in helping to navigate this process and will be more than happy to run a free assessment to check on how your current bank rate and product stacks up! Click here to get a Free Assessment, Book a One on One Session OR Call Us on 1300 00 5667 to chat more.