The RBA Board has decided to keep the official cash rate on hold at the record low 0.10%pa this month. Their decision comes as we witness the largest one-month jump in house values in 17 years and a surge in new home loans.
While this indicates the Australian economy is recovering sharply, it has prompted warnings the Reserve Bank may need to soon reassess record-low interest rates.
While no one can accurately predict when this will happen, it begs the question: do you have a portion of your mortgage fixed?
Fixed vs variable?
The main advantage of a variable interest rate is this: when interest rates are low, your monthly repayments are low. That’s a win!
But, when interest rates eventually begin to rise, your monthly repayments will increase. That’s food for thought.
With a fixed loan, your repayments stay firm. This offers you certainty, which can help you plan your finances in other areas.
Where does your loan stand? If you’re not sure you’re getting the best out of your mortgage, give us a call, we can go through your loan and your circumstances.
With the rapid increase in the number of mortgage lenders offering home loans to consumers, the process is even more complicated than in years past.
Fortunately, Get Smart Financial is here to help.
We have regular contact with a wide variety of lenders, some of whom you may not even know about. Working with us can save you time!
Purchasing a property can be a life-changing experience but the home loan application process can be really daunting if you’re new to the process.
We can prepare your application on your behalf and mitigate the risks in your request. See below banks for the current turnaround times.
Note: Recently updated SLAs are highlighted in Red
If you have any questions, book in a time with me below.
Rachael Bland – Founder & CEO