Interest Rates

What Is A Good Interest Rate?

Taking out a loan of any kind can be the perfect way to get the financial help you need to achieve your goals. From a mortgage to buy a house, to a personal loan to fund that next holidays, there is a large variety of loan options on offer depending on your needs.

The one thing all these loans have in common is that they charge an interest rate on top of the loan price. This means you end up paying back the loan amount, with interest, over a set period of time. It stands to reason you want that interest rate to be as low as possible to save you money. So, what is a good interest rate?

What Is The Interest Rate?

First, let’s take a look at what exactly the interest rate is. An interest rate is a percentage amount that the lender charges in return for lending you the money. It is additional money that needs to be paid off on top of the amount borrowed for the loan.

If you look at it simply, interest is the fee you pay for using someone else’s money. In this case, the lender. This is how lenders profit out of loans, giving them an incentive to provide you with one in the first place. Many people take out a loan when they don’t have the cash available for what they need to purchase. The interest rate is the fee for borrowing that money.

Here are some things you need to understand about your loan before working out the interest rate:

  • Principal amount: this is the amount you are looking to borrow.
  • Loan term: this is how long you will be taking to pay off your loan. The longer your loan term, the more interest you pay.

The best way to look at it is by using an example:

You have taken out a personal loan of $20,000. It has a set term of 5 years, with an interest rate of 8.40% and you are making monthly payments.

To work it out, you divide the interest rate by the number of payments in a year, then multiple this by the loan principal to work out the interest you will be paying.

In this case: (0.084 divided by 12) x 20,000 = 140

This is the amount of interest you will be paying when you take out an interest-only loan. This figure will change when you start paying the principal down the track.

With this in mind, what is a good interest rate?

fixed vs variable itnerest rates

Fixed Vs Variable Interest Rates

There are two types of interest rates you can lock in when you take out a loan. Knowing what is a good interest rate will help you work out the best options for your needs.

Fixed interest rate: this is where the interest rate is locked in at the beginning of the loan term and doesn’t change. They remain the same throughout the life of the loan. It means from the start of your loan, you can calculate the interest you be charge throughout and this figure won’t change. It is considered a safer option.

Variable interest rate: on the other hand, a variable interest rate changes with the market rate. When that rate rises, so will your loan payment. At the same time, if that rate lowers, you reap the benefits. This is considered a more risky option, but it can pay off in the long run.

What Is A Good Interest Rate?

Are you wondering what is a good interest rate? It all depends on the market at the time you are borrowing. Before you take out a loan, it is a good idea to shop around to see what interest rates are on offer. When it comes to comparing lenders to take out a loan with, you can look at the interest rates they were charging and use this to determine where the best value for you lies. You can often find a number of comparative tools online, which help you get a great overview of what a competitive interest rate looks like.

It all comes down to doing your research before diving in and taking out a loan. By determining what a good interest rate looks like you can save yourself plenty of money over the course of your loan and end up paying significantly less overall.

good interest rate

What Is A Good Interest Rate On Your Next Loan?

Are you on the hunt for a new loan for your situation? If you are looking to lock in the best interest rate, then speak to the experts at Australian Lending Centre. We will help you hunt down the best interest rates and provide you with a number of competitive options when it comes time to take out your next loan.

Interest Rates News

When Will Australian Interest Rates Rise Again?

The global pandemic COVID-19 has had a drastic impact on all industries. People have found themselves out of work, businesses have been forced to close down and people have been self-isolating from home. Australia’s economy has deteriorated under the impact. To protect the economy, Australian interest rates have dropped to rock bottom, however, this can only continue for so long. In this article, we discuss when will Australian interest rates rise again?

The primary response to the crisis has been focused on public health. While the secondary response has been saving what’s left of the Australian economy. Back in March 2020, the Reserve Bank responded by slashing the interest rates to a record low of 0.25 per cent. As we slowly return to life as normal, we are left wondering when will Australian interest rates rise again?

The Current Climate

With the onset of the global pandemic and the situation changing daily, no one could have predicted the impact this health crisis would have globally. Yet, as soon as social distancing laws were placed in Australia, many businesses were forced to shut down. This lead to an immediate 5.5% slump in jobs. Data suggests that 780,000 people found themselves out of work by the beginning of April. Shockingly, restrictions were only introduced on 30 March. In addition to this, wages were said to be down 6.7% in the three weeks following this.

To combat this, the Government introduced the Job Seeker and Job Keeper packages. This was an effort to keep the economy flowing and as many people in employment as possible. The Reserve Bank of Australia also stepped up by slashing interest rates. They now sit at the lowest ever in Australia’s history.

interest rate increase

How Do low Interest Rates Help?

These interest rate changes have a huge impact on everyday Australians. However, the level of impact depends on whether they hold fixed or variable loans. If they hold a fixed loan, they will see no change. But those with variable loans will be able to save plenty of money with a reduced amount of interest charged on their account. This, in turn, impacts on their consumer behaviour. If they are able to free up more money, they will spend it in the economy. As a result, giving it a much-needed boost. It also lowers the cost of taking out a loan. Those struggling with finances during this crisis can use a loan as a viable option to help them out with the loan interest rates.

Now that restrictions have eased with children returning to school and people returning to work, where does that leave interest rates? When will Australian interest rates rise again?

When Will Australian Interest Rates Rise Again?

The simple answer: nobody knows. What we do know is that it is unlikely we will see a further drop in interest rates. But at the same time, they are also unlikely to rise any time soon. Reserve Bank governor Philip Lowe said the bank would hold the cash rate at 0.25 per cent “until progress is being made towards full employment and it is confident that inflation will be sustainably within the 2-3 per cent target band”. While restrictions have eased, life is yet to return to normal. Unfortunately, it could be a long time before we see the economy make a recovery from the effects of the pandemic.

According to Dr Low, this rate could remain in place for years, as the economy slowly builds its way back up again.

At the moment, there are too many unanswered questions to be able to put in place an accurate prediction. With restrictions beginning to ease, we have to wait and see if we are hit with a second wave of the virus. This would result in stricter measures coming back into play. These are all new waters we are navigating. Sadly, it doesn’t look like we should expect things to change anytime soon.

The good news is, now is the perfect time to get your finances in order as much as possible in your situation. You can use the rate cuts to save your money so it is put away for a rainy day, pay off any existing debt while the interest is low, or even refinance your loans into one new low interest rate. Now is the time to start exploring your options.

rise in interest rates

Need Help?

With the current climate, now is a good take a good hard look at your financial situation. From here, you can see what changes you can make to secure your future. Work out which option is the best for your current situation now. From here, you can put a plan into place while the interest rates remain low for the foreseeable future. If you are looking for a helping hand to navigate these waters, contact the experts at Australian Lending Centre. We can help you get on track with your loans. With our assistance, you can capitalise on the low-interest rates.

Debt Management Credit Card Consolidation Financial Planning Interest Rates

How is APR Calculated?

Wondering exactly what APR is and questioning how is APR calculated? We have all the answers you need to help you discover what the APR is and why it is so important when it comes to interest rates and borrowing money.

What is APR?

APR, or annual percentage rate of charge, refers to the interest rate for a whole year. Rather than looking at a monthly fee or rate charged on a loan or credit card, the number is expressed as an annual rate instead. Many people confuse APR and interest rate, but there is a clear difference between the two. Understanding this can make a huge difference when it comes to your repayments.

If you have a credit card or a mortgage, then it is highly likely you have heard this term before. But have you ever taken the time to work out what it actually means for you? While it doesn’t make much difference when it comes to paying off your credit card, it can make a huge difference to your monthly mortgage repayments. Therefore, it needs to be looked into carefully and calculated properly, especially when it comes to choosing between lenders.

While an interest rate may look good on surface level compared to other lenders, it can be deceiving depending on their APR. We show you why.

Interest Rate Vs APR

Firstly let’s take a look at the difference between an interest rate and an APR. So how exactly does APR differ from the interest rate? Put simply, the interest rate is the cost of borrowing the money. For example, if you borrow $500,000 with a 5% interest rate, this is the principal plus interest. Your interest for the year will be $25,000, or a monthly payment of $2085. Simple, right? So where does APR factor in?

APR on the other hand, includes other costs associated with borrowing money and is calculated as an annual figure. This is what makes the APR a much more effective way of determining the costs associated with a loan. These fees can include broker fees, closing costs, rebates and more. Just like the interest rate, they are often referred to as a percentage.

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How Is APR Calculated?

Let’s take a look at the example above. You have purchased a home for $500,000 and we know that the interest owed to the financial institution on top of this is $25,000 a year. But now we have to look into what other costs were incurred in this process, such as:

  • Did you pay any closing costs?
  • Did you have mortgage insurance?
  • Was there broker fees?
  • Rebates?
  • Any other costs?

These fees are added to the original loan, to give you a new loan amount. For example, if these fees amount to $5,000, then your new loan amount is $505,000. The interest rate stays the same at 5%, but a new annual payment is calculated against the new loan amount. Instead of paying $25,000 annually it is now $25,250.

So, how is the APR calculated from all of this?

You need to take the new annual payment ($25,250) and divide it by the original loan amount ($500,000). This will get you 5.05%.

In this scenario the APR is 5.05%, while the interest rate is 5%. As you can see, APR is the figure you need to pay attention to as it actually refers to the amount you will be paying back.

What Does This Mean for Loans?

When it comes to borrowing money for a big loan, such as a mortgage, many borrowers get hung up on simply comparing interest rates. The problem with this is that it does account for any of the upfront costs that are involved with the loan. This can account for a high APR. While the interest rate may have initially looked good, when you factor in the APR, it may not be the best offer out there for you.

The part most borrowers find confusing is when they come across two different lenders, offering the same interest rate with the same monthly repayments, but with different APRs. What this means is that the lender with the lower APR requires fewer upfront fees throughout the process. All in all, this will offer the better deal for you.

Having a clear idea of what an APR is and being able to answer the question how is APR calculated will make huge difference when it comes to taking out a loan. You can use this information to make more informed choices that leave you financially better off as a result.

Australian Lending Centre

Get in touch with the experts at Australian Lending Centre for professional advice about APR’s and how they are calculated. We can help you make informed decisions related to your circumstances without getting lost in the numbers. We are always here to help.

Personal Loans Interest Rates

Why Patients in Debt Turn To Low Interest Rates When Applying for Loans

It’s definitely costly to be sick nowadays and patients in debt are particularly vulnerable. Despite the government’s efforts in promoting healthy workers, healthy eating and active living, illnesses still arise and more often than not people aren’t financially ready for it. No wonder many patients look for low interest rates loans when in need for financial security.

The No-Work-No-Pay Policy Scares A Lot Of People

Would you rather go to work than call in sick and risk losing your job in the process? Many people drag themselves into work while they are sick simply because they cannot afford to call in sick. If you are a casual or on a contract without sick pay benefits, you might be forced to report for work despite your doctor’s advice.

It’s not uncommon to hear stories of people suffering from injuries or illnesses to work through their discomforts so that they can still receive their wage. Some people don’t even bother applying for sick leave if they know their company is restructuring or cutting down on costs and firing employees.

Some people take a few days off but immediately return to work after using up their statutory sick pay, even though their doctors’ may advise them to take a longer break. This can actually harm your future health and mean you need to take more time off down the track.

Although the Australian law requires employers to give their employees’ sick leave benefits it is worth noting that the number of days covered may not be enough for a person to fully recover. That’s why some employees’ will come back to work earlier so that they can keep their job and receive their wages in full.

Many Self-Employed People Have No Comprehensive Medical Insurance

While Medicare, gives you access to free hospital treatment and subsidises your out-of-hospital medical treatment, you may still have to shoulder some out-of-pocket expenses if you need elective surgery. Some people still take out private health insurance products from top companies like Medibank, Australian Unity, HCF and the HBF. The most common health insurance coverage includes the following: Lifetime Health Cover, Medicare Levy Surcharge, and Private Health Insurance Rebate. But, there are times that the insurance coverage is not enough to foot the bill.

There are many things you need to pay for, and being sick doesn’t help at all. Patients in debt can save money by doing the following:


Food takes up most of our money, with it being one of our basic necessities; we can’t really go without it, and so minimising the costs used for them might be the best option. If you’re used to eating out you should start cooking homemade food, not only is this cheaper, but it’s also healthier.

When buying groceries, you should make sure that they will last you an entire week without having to go back to the market again. Remember, this should turn out cheaper than eating out every day, so buy only the ingredients that you’ll need. If possible, look for discounts, or you could even look for some vouchers and/or coupons that might be lying around your home.


Going to and from work can be such a hassle. Having your own vehicle might be more beneficial on your part because you can budget the money you use on fuel. However, as with everything in life there are other expenses attached to owning your own car; this is where public transport has the upper hand.

The key to budgeting your transportation expenses is to average your monthly expenses and then create a budget based off that figure.

Bottom Line For Patients in Debt

You need to pay your debts each month, and unless you find personal loans with low interests for patience in debt, it is difficult to keep up with your payments.

Bills might come knocking at your door on the 15th or the end of the month, so you should make sure that you have money set aside for them. Everyone has debts they have to pay. Do everything possible to pay on time and you’ll eliminate them in the near future. Australian Lending Centre offers loans with low interest rates that you can fall back on at troubled times. If you’re interested in applying for an affordable loan, make an enquiry today!

Interest Rates

A Practical Guide On How To Get the Most Affordable Loan Interest Rates

Do you want to get the best interest rates on your loans? Getting into debt is already going to cost you money, and a few percentage points can definitely cost you more than you are prepared to get. Here are tips on how to get the most affordable loan interest rates when seeking for finance.

Understand the type of interest rates you are getting

Interest rates vary depending on the type of loan. For example, refinancing has fixed or variable interest rates. A second mortgage can have a fixed or variable interest rate which is generally more costly than the first mortgage. But, the interest rate in a home equity line of credit is always variable; it goes up and down depending on the changes in the market.

Check your existing credit

If you want to get the best interest rate for a mortgage, business loan, personal loan or any type of loan, your existing credit must be good enough for lenders to entrust you with their money. If you have bad credit, lenders will consider you as a high-risk borrower and would increase your loan’s interest rate to compensate for the risk. That’s why it is advisable to get your credit report, challenge any wrong information and clean up your debts.

If you no longer have time to repair your credit before taking out a new loan, debt consolidation loans can be your practical option. It can help you increase your credit score simply because you are paying off your multiple debts at once. In the long run, you can get a few extra credit score points that could save you thousands of dollars the next time you apply for a loan.


Get the right timing when choosing between fixed-rate and adjustable interest rates

If you’re smart then you can get the most affordable loan interest rates by timing your loan right. If you’re paying the loan over a short period of time, an adjustable-rate can be a cheaper option. But, if you’re not sure of your finances and market fluctuations, a fixed rate could be a good idea to ensure you know how much you are paying in the long run.

Always consider your personal financial conditions as well as the market fluctuations when making a decision. Rates may rise, and your financial plans may change so always think twice before you choose the type of interest rates to pick. Sometimes if there is not that big a spread, it might not be worth the gamble especially if rates rise and your plans change.

Request for a no-obligation loan cost estimate

The Australian Lending Centre offers an estimate of the overall costs of your targeted loan. Check the costs to compare the loan terms with other loan products to see which type of loan offers a better rate. You can also check if one lender offers significantly lower interest rates than the other. But, don’t just focus on the interest rate – think of the overall loan cost. Some lenders may offer lower interest but they may charge you with exorbitant fees and costs.

Contact the Australian Lending Centre today to know which loan offers the best interest rates in the market!

Debt Consolidation Interest Rates Personal Loans Refinance and Refinancing

Interest Rates, What Do They Mean For Us ?

Interest rates – They’re unavoidable when it comes to getting a loan, but knowledge is power… If you are aware of what interest rates mean then you can take advantage of them. Read on to find out more…

What’s happening at the moment?

After reaching a record low of just 1.5% in August this year, the reserve bank has remained faithful that the cash rate will act as a catalyst for economic growth. Glen Stevens, the governor of the RBA stated that “overall growth is continuing at a moderate pace, despite a very large decline in business investment”. So, the economy is functioning at a
“moderate pace” but business investment is low. It seems that current economic growth has therefore been offset against consumer consumption. I mean there are many factors to which the Australian economy relies on for growth. One of those factors is business investment. But a recent decline in investment must be met with an increase in both consumer and government expenditure for the economy to operate at a “moderate pace”. Now the Australian budget for the 2016-2017 financial year was recorded at -2.2% of GDP, 0.2% improvement from the 2015-2016 budget outcome of -2.4% of GDP. The trend, a decrease in government expenditure. Therefore, one could come to terms with the fact that the government is becoming more interdependent on consumers to fund economic growth. At a time where the cash rate is just 1.5% the risk in today’s financial markets is low. Inflation is currently subdued at 1.3% – which is well below the RBA’s target of 2-3% – prices are flat across the economy. I honestly wouldn’t be surprised if I saw a half of Australia’s banking sector at Bondi Beach.

Act now or Act later?

My suggestion, get busy spending. Refinance your loan, seek personal loans, many brokers will help in providing short term loans. If you have debt that needs to be consolidated, do it now. Of course, you can wait, and even then I wouldn’t suggest you refrain. Franklin Templeton – which had $733 billion of assets under management at the end of September –  is betting that the RBA will cut the cash rate two more times, indicating a positive direction for consumers who wish to borrow by mid-2017. But like the missus, the future is an unpredictable game, where the odds are skewed. Either way, saving is a non-viable option and many Australians have recognized this trend with the Australian Household Savings Rate declining from 8.8% in the July quarter of 2015 to 8% in the July quarter of 2016. Today is a period which is conducive of wealth building, the economic conditions are right for it. So get started, I know I have.

Home Loans Interest Rates

Are You a Victim of High Mortgage Interest Rates?

In recent years, many of us became victims of high mortgage interest rates without even realising. This problem affects mostly the home loans because their term is the longest. But how can you know if you are in such a situation, too?

High Mortgage Interest Rates – Are you a victim?

Verify your current loan

In the case of home loans, the term is rarely shorter than 25 years. Most probably, when you have signed for the loan, you have checked it thoroughly and chosen what was the best for you at that moment. As the years have passed, the circumstances may have changed. For example, if you have opted for some flexible features, such as an offset account that you no longer need, it would be a good idea to downgrade your loan to a basic one now.

If, after verifying your current loan, you decide that you are a victim of high mortgage interest rates, you may consider getting a better rate from another provider.

Check the refinancing costs

As you decided to switch to a newer loan or provider, you may be so excited about the savings you can make that you simply forget about the refinancing costs. Don’t rush to conclude that your mortgage interest rates are the worst on the market and you can completely change the situation by changing lenders.

In most of the cases, calculating the refinancing costs will discourage you from making a change, as they are higher than the savings. Check to see if you have paid the lender the mortgage insurance and establish what are its terms and conditions, as well as the discharge fee. Also, calculate the costs of the application and valuations fees if you opt for a new lender.

Analyse the options

If, after calculating the refinancing costs, you still consider that you need to refinance, analyse all the options before making a decision so that you avoid being a victim of high mortgage interest rates once again.

This analysis should include a comparison of the loan types, in order to decide if a variable, split or fixed rate loan is suitable for you. If you don’t need any flexible features, don’t opt for them, because your mortgage rate will increase.

Another important aspect of this evaluation is to check the potential providers. Find out which of them have the best deals, who is reliable or not, etc. Moreover, read the contract carefully and don’t be afraid to ask all the questions you have before signing for a new loan.

Home Loans Interest Rates Refinance and Refinancing

Do Rentals Mean Losing Money?

The general, common saying that living in rentals equals to throwing money away is certainly not new, is it? And at first, it would seem this way. Rental means you don’t buy the house you live in, compared with purchasing a house that, in time, becomes yours eventually. Still, various aspects are often overlooked concerning this situation.

The fact is that the standard cliché phrases regarding the effectiveness of rentals have an overreacting approach. Allow me to explain the reason rentals might be a better choice compared to buying a house in some situations.

Are rentals equivalent to throwing money away?

The answer to this question is both yes and no. The fact is that, to some extent, renting might equal losing money. The logic is quite simple. As you rent, you don’t invest that sum of money, which doesn’t eventually grow or bring you any further benefits.

On the other hand, the non-deductible interest on home loans can also be conveyed as a waste of money for a change. Thus, renting is most of the times increasingly more convenient and affordable. Sometimes, renting might be the better choice compared to a mortgage. In the same respect, a house is an asset that is eventually affected by inflation, which comes to the disadvantage of most homeowners in the long run.

Here’s how it is. Let’s say that you pay rent, while, at the same time, you invest in shares or super. If you invest the difference between the sum you pay for your monthly rent and the amount of money you would normally pay for a home loan, there’s a strong chance your financial situation will significantly improve. When making mortgage repayments, you are less likely to make other investments. Still, you need to settle whether this choice is the right one for you or not.

The real costs of buying

If rent money equals dead money, then interest repayments equal dead money as well. The average interest rate in Australia at the moment is estimated at 4.50 percent. This means that you would be required to pay $18,000 per year on a loan of $400,000 if you wish to purchase a house valued at $500,000. This sum is almost as much as you would pay for a year of rent. Additionally, interest rates on variable mortgages are on the growth and are estimated to reach 6.20 percent in the long run.

It is needless to point the ownership costs that accompany house ownership. The ongoing costs of a property include repairs, fees, insurance, depreciation, council rates and so on and so forth. Not to mention that when buying a house, there are costs including stamp duty, commissions and so on.

The bottom line is that it’s up to you to decide whether opting for rentals is a better choice for you than purchasing a home. You ought to consider your personal needs and financial situation, as well as your plans for the future.

Interest Rates

4 Reasons Why the Australian Reserve Bank has not Cut Interest Rates

Australian Reserve Bank has not Cut Interest Rates

The Reserve Bank of Australia (RBA) has slashed interest rates to 3%, a record low, in November 2011. For the last 15 months, it has refused to increase or further cut it. The central bank has decided to leave the rates unchanged during its first policy meeting for this year, which was held in the first week of February. As it seems, the monetary policy of the country keeps the mode on a wait-and-see program.

Interest rates were last trimmed down to help spur possible growth after the then decade-long mining boom had indicated clear signs of losing its momentum. The economy somehow slowed in the entire 2012 because export demand for raw materials coming from the country eased.

Interest Rates

7 Things which Contribute to Interest Rate Cuts

Interest rate is the amount charged by lenders or loan providers against the borrowed money of consumers/borrowers. As a consumer, you probably are always monitoring it. When rates are low, it can be ideal to apply for and obtain loans. It is the time when borrowing will not be that expensive.
Interest rates usually go up, especially these days when global economies and finances turn volatile. But at times, governments and central banks also cut such rates. Here are seven factors that usually lead to reduced or lowered borrowing rates.

Interest Rates

Australian Economy is Growing – Interest Rate Impact

The Australian economy grew 1.2% in the second quarter of fiscal year 2011. That growth exceeded expectations of a 1% economic expansion. This surprised numerous economic analysts and market observers, who mostly predicted a slower growth in the period. According to some experts, the economic boost could be attributed to stronger performance of several sectors aside from mining, which for quite some time has been solely driving growth of national economy.

Investors look at this news as an additional positive development. A better performing Australian economy could translate to better profitability. Most company shares in the market have been rising following the announcement of the better-than-expected economic growth. The local currency is also gaining strength against the dollar, which is ideal for many businesses, especially those that require importation of raw materials. But what is the impact of this news to consumers, particularly to the interest rates?

Interest Rates

First Interest Rate Cut in 7 Years

Australians have welcomed with open arms the Reserve Bank’s first official drop of interest rates in 7 years. The RBA on September 2nd, dropped its cash rate by 0.25 to 7%, its first cut since December 2001.

While this comes as a certain relief to many families struggling under the pressure of mortgages, many are still cautious. As Prime Minister Rudd announced “Interest rates took a long time to rise and they will take a long time to come back down. And the road will be a very uneven one on the way through.” However many remain optimistic, especially those struggling to make ends meet, and spiralling into debt.

Interest Rates

Fake Cards Skimmed As Part of Scams in Melbourne

The Australian Lending Centre – a specialist in debt consolidation likes to provide their clients with useful information. Following is an example of some helpful info – which will relate to any person that uses an ATM.

Recently more than 5,000 ATM cards have been skimmed in just four weeks as part of an elaborate $500,000 scam.

The devices allegedly recorded details from swiped cards while a small camera filmed customers entering their personal identification numbers (PIN).

Interest Rates

Interest Rates on the Rise Again

After raising interest rates three times in quick succession in late 2009, the Reserve Bank of Australia (RBA) increased interest rates again in March – the first rate hike for 2010.

According to the Australian Bureau of Statistics (ABS), retail sales rose a higher-than-expected 1.2% to $20.14 billion in January – up from $19.91 billion in December. After the ABS announced strong growth in retail sales, the Reserve Bank decided to raise the official cash rate to 4.00%, marking the fourth rate rise in five RBA meetings.

Interest Rates

Great News for Mortgage Holders – No Rate Rise

In its first meeting of the year on Tuesday, the Reserve Bank opted to keep rates on hold for February.

The decision comes on the back of economic data released last week, showing inflation was running lower than the experts expected.

However it’s important to note that industry specialists anticipate that we will experience interest rate rises in the coming months. Therefore mortgage holders are presented with a window of opportunity to opt for a better home loan

while rates remain low.

Interest Rates

Flood Crisis May Cause Interest Rates to Rise

As 2010 has just come to a close and the forecasts for the upcoming year are being released and scrutinised, there is a lot of speculation swirling around interest rates. The flood crisis we are experiencing at the moment in both

Queensland and Victoria are making an increase in the interest rates by the Reserve Bank of Australia (RBA) nearly inevitable.

 Many argue that with our current strong dollar, the prices of imported goods should be keeping the inflation balanced, but in actuality the price of the goods are declining at a slow rate. This slow degradation is not enough to prevent the internal pressures that cause inflation.

Interest Rates

Likely Interest Rates Increase for Christmas

Interest rates are said to rise again before the holiday season begins, according to industry experts. In the previous 12 months, inflation has risen by 3.2% which is greater than the Reserve Bank of Australia’s inflation band. So why do interest rates increase for Christmas?

The expectation is that if the RBA does increase the rate by a 25 basis point (which is 0.25%) then the commercial banks will most likely take their lead and raise the rates on mortgages considerably more than the 25 basis point.  The 25 basis point rise will increase a monthly repayment on the average $300,000 mortgage by $50.

Interest Rates

Homeowners Sigh Breath of Relief as Interest Rate Rises Halt

Homeowners Australia wide have sighed a breath of relief this month, as the Reserve Bank did not raise interest rates. There has been an ongoing climb in interest rates, with 12 steady rate hikes since 2002. This month signals the first time the RBA has remained static in 6 years.

As Icap senior economist Matthew Johnson discerned recently, “The bond market is saying pretty strongly that the RBA is not going to raise interest rates”. This is welcomed news for home owners struggling under the increasing pressures of mortgage repayments.

The stresses of mortgage debt is a wide spread problem across the nation, with homeowners’ living budgets suffering as they struggle to meet house basic repayments. The end to the rate rise crisis momentarily gives a cautious optimism for Australians.

If you are struggling under the rate rises and are falling into mortgage debt, ALC can help refinance your repayments into one easy monthly sum. For more information on the options right for you call us now on 1300 138 188.
Interest Rates

Budget Aims to Tame Inflation: Will Interest Rates…

16 May 2008

Many analysts have praised the new 2008 Rudd Government Budget for its spending cuts in an amiable move to stop the rising problem of inflation, however will it be enough?

The aim to put downward pressure on the inflation crisis has seen slashes to high income earner benefits, with the media responses generally positive towards the Budget’s target. However there has also been speculation about how far the budget can go in entirely tackling the monstrous inflation, “the Reserve Bank of Australia is not out of the woods yet” warned Bank economist Riki Polygenis.

Interest Rates

Interest Rates On Hold For One More Month

More good news for the consumers of Australia as we move into the third month of the year! The Reserve Bank of Australia (RBA) met yesterday to discuss the interest rates in their monthly board meeting.

In the early afternoon, a statement was released stating for the rates would stay firm at the current cash rate of 4.75%. As this decision did not come as a shock to the majority of the market, it is a relief and gives consumers another month of breathing space. This decision was hinged on various situations including the high exchange rate, strong competition in the market, consistent inflation and a strong national income.

Many industry professionals have observed that the next interest rate move will probably occur in the third quarter of the year. August seems to be on the top of economists as the month to be prepared for change, though they do say it could come as early as May.

For consumers this means we have a few more months of low rates before another hike increases interest on credit cards and more importantly, mortgages. Now is a great time to think about refinancing your current home loan in order to lock in a lower rate while possibly unlocking some of the equity in your home to free up some cash.

Refinancing allows you to pay out your current home loan and use additional equity in your home to fund a holiday or renovations. This product also allows you to change your current mortgage provider or the features locked in to your home loan.

Throughout the life of a home loan, it is not unusual to change providers or products due to the fact that life situations change which means there could always be a better home loan out their for you.

Avoid trying to find the best home loan and lowest rate yourself and give Australian Lending Centre a call, as we have already done the hard work for you. Call us on 1300 138 188 to discuss your home loan option with a refinance consultant. Alternatively, fill out the enquiry form on the right and a refinance consultant will contact you shortly.

Interest Rates

Flood Crisis Leading to Interest Rates Increase

As the rain has ceased and the flood waters have begun receding, we as a country are starting to feel some of the affects from the flood crisis. At your local market you may have noticed prices in the produce section are beginning to rise and are becoming scarce. For example, mangoes are nearly impossible to find. Along with mangoes, tomatoes and lettuce have become more expensive. Other produce starting to see changes are zucchini, bananas, broccoli, sweet potatoes, capsicum and watermelons.

The major supermarkets, Woolworths and Coles, have released statements claiming they are in the process of identifying whether it is more cost efficient to start importing primary produce to avoid massive influx in prices. As these two supermarket giants control 45% of the fruit and vegetable sales nationally, they play a major part in the control over prices.

In addition to the immediate affect of an influx of prices, there is also key concerns on how the farmers will be able to bounce back to plant the winter staples such as corn, cabbage, potatoes and chillies. With the floods washing away the majority of the crucial topsoil, the forecasts are declaring all crops will be low this year.

If the prices on all produce does skyrocket and nothing is done to counteract this, fruit and vegetable prices will force inflation upwards. With the already looming rumours of interest rates increasing in March, the flood crisis will undoubtedly make those suspicions true.

With inflation around the corner, interest rates will move upwards which may affect your current mortgage or additional debt, such as credit cards or personal loans. In order to avoid this increase and lock into the lowest rate you can – you should look into a debt consolidation or refinancing your loans now while interest rates are still decent.

With a debt consolidation at Australian Lending Centre, you will be able to roll all of your debt into one loan on a fixed interest rate that will not be affected by inflation. Through this option you will also be able control and pay off your debts faster since you will be using one low rate and not focusing on various payments with varying interest rates.

If you want assistance with your debt call the Australian Lending Centre on 1300 138 188 today to speak with a debt consolidation consultant. Alternatively, fill out the enquiry form to the right and a consultant will contact you shortly.