Rates cut! What’s your next move?
The Reserve Bank of Australia cut the interest rates to 1.75% last Tuesday to a ‘historical low’ but what does that actually mean to you? As of today, all but one of the big four has passed on the 0.25% cut with ANZ deciding for the moment to hold firm. Many second and third tier lenders have remained silent during the last week to the surprise of a few industry experts. The fact remains there has never been a better time to re-look at your finances if you are unhappy with your current lending arrangement or if you just want to know if you have the right deal available to you.
The following items might be valuable if you are considering refinancing in the near future:
Interest rate –The obvious but necessary one to discuss if you are going to find the right deal for yourself. Research remains the key in this area and can be time consuming. A quality broker will be able to assist and provide you with options suited to your financial needs. Remember, the rate advertised might not be the rate applied to your loan/s due to your personal situation.
Fees – It is always a good idea to check with your bank. Naturally this may spark a conversation about why you are thinking about refinancing and it may very well lead to a better offer to retain your business. Understanding if there are any fees applicable if you were to refinance is just as important as interest rates. Fees such as an exit fee or application fee if applying for a new loan all need to be weighed up against the interest rate change to ensure the move to a new bank is viable.
Savings – Refinancing gives you the potential to save on your home loan or any investment loans you may have. With the latest cut, the market is very competitive and this gives the consumer some leverage at the negotiating table. These potential savings could be used to put towards renovating your existing home, buying a new car or growing your savings.
It never hurts to seek out a second opinion when it comes to your finances, at the bear minimum it will reaffirm that you have the right deal for your needs. If you require any assistance or would like a review of your finances, Mark Young is available to discuss on 0403 557 281.
Your full financial situation would need to be reviewed prior to acceptance of any offer or product. Credit Representative 485372 is authorised under Australian Credit Licence 389328