Who are you supporting to win the 2016 Premiership Trophies this weekend ?
AFL
Sydney Swans vs. Western Bulldogs
Cronulla Sharks vs. Melbourne Storm
We all know that Australian Banks are very keen to make huge profits, however, did you know that in many circumstances it is more profitable for a Bank to reduce the interest rates on a Home Loan to retain an existing customer rather than incurring the significant cost to replace a customer.
The amazing thing is … MOST CUSTOMERS DON’T ASK !!!
What do you need to do …
Step 1: Know your current interest rate
Step 2: Research what other Banks are offering (including offers to cover the costs of refinancing)
Step 3: Call the phone number noted on your loan statement (i.e. NOT your Bank Manager) and advise the Bank you are considering leaving & quote the lower interest rates you can achieve with other Banks.
Step 4: Ask the Bank if they will match this offer to retain your business.
PLEASE REMEMBER: If you have a Mortgage Broker please contact them first, as they are experienced with these negotiations & may have access to even lower interest rates not advertised publicly by the Banks. Your Mortgage Broker can use these lower interest rates to achieve even greater savings for you.
The RBA Board has reduced the Official Cash Rate to a new record low 1.50% in the hope this will stimulate the Australian Economy to combat the current low levels of inflation.
The RBA is hoping Australian families will start spending more on ourselves if we are paying less interest to the Banks for our Home Loans.
The question is … Will the Banks play their part by passing on this rate cut in full ???
Borrowers & home buyers who are asking “will interest rates continue to go down” will be pleased to learn that the lower than expected Inflation Figures have Senior Economists confident in their predictions that the Reserve Bank will seek to stimulate the Australian Economy by reducing the Official Cash Rate to a new record low when the RBA Board meets again on the first Tuesday of the month.
Borrowers can be comforted by this news with the majority of economists also predicting interest rates will remain low for some time to come.
The Board of the Reserve Bank has voted to retain the Official Cash Rate at the record low 1.75% and will continue to monitor the impact on the Australian economy as it reacts to uncertainty following the federal election.
The only good news for borrowers is that hopefully the seemingly never ending election coverage will be over shortly.
With the United Kingdom (or not-so United Kingdom) recently voting to remove itself from the European Union (EU) many Australians will be asking themselves …
What happens next ???
How will BREXIT impact on Australia ???
Attached is a link to an article written by Riccardo Briganti (Investment Specialist – BT Advice Research) which may assist to answer these questions.
http://f.datasrvr.com/fr1/616/46373/Brexit_-_Hope_or_Glory.pdf
Great news for first home buyers in Qld as the State Government has announced the First Home Owners Grant (FHOG) will be increased to $20,000.00 (previously $15,000.00).
This increase is effective on 1st July 2016 however will only last for 12 months.
To learn more & to confirm if you are eligible click on the Qld Government link below
https://firsthomeowners.initiatives.qld.gov.au/
Did you know that each bank has it’s own individual method of calculating how much you can borrow ???
Did you also know that there can be a significant difference in the maximum loan amount one bank will lend to you compared to the other banks.
The reasons behind these differences are many & varied with several example noted below.
Unfortunately many potential borrowers are not aware that ALL BANKS ARE NOT THE SAME. The reality for many hopeful borrowers is that if one bank is unable to assist, you may actually have other banks who are more than happy to say “YES” and may even be prepared to offer lower interest rates to win your business.
Q: How can I calculate my actual maximum borrowing capacity and home loan options ???
A: Click on “CONTACT US” or speak to our friendly Mortgage Specialists
The Reserve Bank Board has voted to reduce the Official cash rate to the new record low level of 1.75%.
This rate cut is in response to recent economic reports confirming lower than expected inflation figures in the Australian Economy.
The good news for borrowers is the majority of banks appear to be passing on the full 0.25% p.a. interest rate cut to borrowers with the except of ANZ Bank which is only passing on 0.15% p.a.