In February, the last of the major Australian banks increased its rates putting its owner-occupiers on principal and interest up 0.12% and interest only rates up 0.16%. These ‘out of cycle’ can add up to big $ in additional repayments over the year of a loan.
RBA Governor, Philip Lowe, recently admitted that the odds of a rate cut are around the same as an increase but either way, when the banks are moving out of cycle to cover operational costs, the key is to focus on where and how you can make savings here and now.
Rate predictions aside, now is the time to dust off your loan contract and have a good look. Is it time to refinance? Refinancing means replacing an existing loan with a better-looking one that really suits your needs. This is where we come in. Some features that I look at include:
- a lower rate = lower repayments
- the current fees on your loan
- is the loan meeting your financial needs eg. do you need to redraw money easily from your loan? You may need an offset account.
- Fixed or variable – what makes sense for your situation?
I work daily with over 45 banks and lenders, and know how to find a competitive deal for you. So let us get to work! Get in contact today.