There was another sigh of relief yesterday for Australians as the RBA kept the official cash rate at 1.5% for the 20th consecutive month. Moving forward, all we can do is hope that these low rates will last.
The RBA has indicated that the next time the cash rate moves, it will be an upward shift. We're unsure of when this shift will be, however, some savvy investors are now starting to take advantage of these lower rates in case the banks decide to increase rates across the market.
How could a fixed rate help you?
Interest rate rises can have a large impact on household budgets. If your home loan interest rate were to rise from 4.1% to 5.6%, it could cost $340 more in repayments a month based on the national average $374,050 loan*. If you were to refinance your home loan to a fixed rate, you could enjoy the benefit of knowing how much your repayments would be each month.
The first step is to find out your current home loan rate and how much your repayments are each month. From there, ask yourself: if my repayments were to increase, am I prepared to pay more? If you answered "No", then chat with one of our brokers today to discover how we can help.
*Please note that approval of any lending application will be subject to the applicant meeting responsible lending and individual loan eligibility criteria. Terms and Conditions apply. The increase in monthly repayments is based off a $374,050 loan with an interest rate of 4.1% per annum compared with $374,050 another 5.6% per annum over 30 years. A customer should decide whether a fixed rate is preferable for them based on all the loan terms and conditions – not only the interest rate.