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.
Many banks were quick to advertise & announce how good they were to pass on the full 0.25% p.a. RBA rate cut in June 2019.
Not surprisingly many of these same banks were making far less noise when they held back from passing on the full 0.25% p.a. rate cut announced by the RBA in July 2019. (i.e. total 0.50% rate cut over 2 months).
Below is a list of the Banks & their combined interest rate reductions for the months of June and July 2019.
A Special 5 Year Fixed Rate of only 3.49% p.a. is currently available for First Home Buyers … WOW !!!
This will provide FHB’s with the confidence of knowing they have secured an incredibly low rate which cannot increase for the first 5 years of their Home Loan.
Not only this, but FHB’s can make additional repayments of up to $30,000.00 to reduce their loan balance & can also redraw these additional repayments if they need to have access to these funds in the future.
Click on “CONTACT US” or call 07 5527 4744 to talk with our Mortgage Specialists
Borrowers & Home Buyers will be rejoicing the decision of the Reserve Bank Board to reduce the Official Cash Rate to a NEW RECORD LOW 1.25%.
Banks are already under pressure to pass on this rate cut in full to their customers with the Federal Treasurer Josh Frydenberg having already holding meetings with the Big 4 Banks to remind them to remain “Customer Focussed” which was a key recommendation of the recent Royal Commission.
The new government is keen to ensure this happens & senior economists agree the banks can’t afford to be stingy or else they will face a wave of borrowers seeking better offers from other banks.
Keep an eye out for the upcoming announcements by your bank and if you are not happy … CONTACT US and we will be more than happy to negotiate with the bank on your behalf.