The cash rate can affect other moving parts of the economy, like employment, investment, inflation, and spending. Therefore, if the economy is strong and high demand is pushing up the price of goods, the RBA can increase the cash rate to slow the economy and inflation rates down. The RBA can also increase spending or create more job opportunities by reducing the cash rate.
Efforts to conserve a dollar have led existing mortgage holders to switch to variable interest rates. Alas, new homeowners are confronted with a formidable challenge as they adapt to the “new normal” from the bygone days.
The motto “Stop paying someone else’s mortgage and get your own” had been extolled for a considerable time until the RBA intensified the pace of rate hikes.
If coming off a fixed rate on a mortgage of $500,000 and an interest rate of 2%, a homeowner may have to find an additional $12,000 per year to service their mortgage payments.
Ahead of its monthly rate announcements, the RBA delves into a myriad of topics that impact the Australian economy. Inflation, employment, international economic trends, and the growth rate of our economy are just a few of the issues that they address.
Keeping well-informed in these issues provides homeowners with a winning strategy to help navigate changing tides. To this end, having a knowledgeable broker by your side is worth its weight in gold.
Brokers are constantly researching the market and stay informed by banks and financiers. That is, your broker can be your sharpest tool during these turbulent times. The unprecedented nature of our current financial climate has made brokers a highly sought-after service by homeowners and investors.
Make sure that when you approach a professional broking service, they are credible and have genuine customer feedback. To qualify a broker’s credibility, check out their customer reviews. Take time to see what people are saying about their experience.
Review your current home loan interest rate to ensure you’re getting the best deal.
This is the perfect time for refinancing your home loan to save yourself money and take advantage of refinance cashback offers which can be up to $5,000.
Although banks raise the interest rates for home loans, they also raise the interest rate on your savings accounts. However, rental demand is higher than ever before, so it could be more beneficial to you to use your savings to purchase an investment property.
Our goal is to source you the best home loan deal that is available for your circumstances. Whether you’re interested in refinancing your current home loan or in taking advantage of your savings to purchase an investment property, we’re here to help you.
We monitor the market everyday for the best deals for our customers. There are hundreds of home loan products available for our customers, so we work through these to find the home loan that’s perfect for your unique circumstances with the lowest interest rate.
Essentially, we save you money and time.
Speak to your home loan specialist today. Its obligation free.