The Reserve Bank of Australia has confirmed the predictions of many senior economists by announcing that the Official Cash Rate will be retained at the current level of 3% throughout February 2013.
This announcement follows the publishing of positive reports from the Australian Real Estate and Building Industries + a renewed optimism in the US and European economies. With an Official Cash Rate of 3% the RBA retains the ability to reduce interest rates in the future if the Australian economy needs additional stimulus.
One of the most common questions asked by Home Loan customers is whether they would be better served with a Fixed Interest Rate or a Variable Interest Rate.
The first step to seeking an accurate answer to this question is to understand that each borrower / family have differing financial requirements and priorities thus there can be no “One Right Answer” that will apply to all.
Listed below is a brief summary of the Advantages & Disadvantages of Variable & Fixed Interest Rates plus several Insider Tips which may assist you to determine the best Home Loan structure to suit you and your family. Read more
Tuesday 4th September 2012
The Reserve Bank is continuing the policy of “Wait & See” by electing to retain the Official Cash Rate (3.5%) at the current level for another month.
The RBA has not ruled out future reductions to Interest Rates prior to the end of 2012.
The Reserve Bank of Australia has confirmed that the Official Cash Rate will remain at 3.50% throughout August 2012.
This decision was anticipated by Senior Economists who believe the RBA is acting cautiously, however, further reductions in Interest Rates are predicted prior to the end of 2012.
From Monday 2nd July the CBA will be increasing the Interest Rates for First Home Buyers and all new Borrowers who are not able to save a 10% deposit.
This increase in Interest costs will also effect Investors who are seeking to maximize their taxation benefits.
CBA is hoping borrowers will not notice the change as they have cleverly disguised the rate increase by reducing their standard discounts for selected borrowers.
The GOOD NEWS for borrowers is that there are many other cheaper Home Loans and Investment Loans in the market to choose from.
So much for the CBA starting the New Financial Year off with a BANG !!!
May 14, 2012 in Rate Rises
Insider Tip ..
Many Banks will negotiate lower Interest Rates and it’s not difficult to achieve great savings. It is simply a matter of knowing “What to say” and “Who to talk to” (i.e. NOT the Local Branch Manager).
Great savings can be achieved without needing to refinance your Home Loan.
Contact our Mortgage Specialists if you wish to know more.
February 16, 2012 in Latest News
, Rate Rises
Following the recent increases in Interest Rates many borrowers are asking . . .
What is a Great Interest Rate ???
How can I achieve Lower Interest Rates ???
The Answer to to the first question is …
Variable Interest Rates: 6.40% p.a. – 6.60% p.a. Read more
10th February – ANZ Bank announced the following changes to Home Loan Interest Rates
1. A nominal increase of 0.06% p.a. to the Variable Interest Rate
2. A reduction of 0.15% p.a. in the 3 Year Fixed Interest Rate Read more
For the 3rd time this year the Reserve Bank of Australiahas increased Interest Rates by 0.25% p.a. Read more
The Reserve Bank of Australia announced today that the official cash rate will be increased by 0.25% to 4.00%.
Borrowers around Australia are anxious to to receive news from their own Banks / Lenders to confirm if their Interest Rate increase will be restricted to 0.25% p.a., or will the profit taking tendencies of the past prove to be too tempting for the Banks. Read more