Great news for borrowers as the vast majority of banks have confirmed they are passing on 100% of the 0.25% p.a. rate cut recently announced by the Reserve Bank of Australia.
Borrowers can expect to receive the lower interest rates within 7 – 21 days (varies from bank to bank).
Q: How can you make the most of the lower interest rates ?
A: You have several options:
- Pay extra amounts into your Home Loan or keep your repayments at the existing higher amount as this will reduce your Home Loan debt faster which will save you even more $$$. The banks calculate how much interest you are charged based on the daily balance of your Home Loan … The less you owe the less interest you will be charged.
- Reduce your loan repayments to suit the lower interest rate and you will have more $$$ left in your pocket to fund the other priorities in your life.
If you wish to discuss which option is best to suit your circumstances please contact our experienced Mortgage Specialists.