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.
Refinancing at a Lower Interest Rate
As every 0.25% interest rate rise adds another $50 to the monthly cost of an average Australian mortgage of roughly $300,000, it’s a no-brainer that future rises are not something to look forward to.
An increasingly popular option to help minimise the hurt of potential rate rises is to refinance your mortgage to access a better home loan to suit your changing mortgage requirements and to lock in a better rate while it’s available.
Refinancing is the process of applying for a new loan on your current property and using the new loan to pay out your current mortgage. You can also add any other debt you may have into your new home loan, such as credit card debt and personal loans.
The benefits of refinancing your mortgage can include:
•Locking in a lower interest rate or more favourable loan terms than your current mortgage provides• Be able to pay off your mortgage sooner •Extending the length of your mortgage, therefore reducing the amount you repay each month to free up your monthly budget •Consolidating your credit card and personal loan debts in with your home loan to take advantage of the lower interest rate a home loan has over a credit card interest rate •Drawing additional funds against your property for expenses of a personal nature, such as a home renovation or the purchase of a new car• To speak with a refinancing consultant today about how you can lock in a better home loan before the RBA increases interest rates in the coming month, simply complete an enquiry form to your right and we will contact you shortly – or call us on 1300 138 188.
