EDITION 15
From The Experts:
Interest Rates
Interest Rates are on their way down. How this impacts you.
With the cost of living impacting many Newcastle homeowners, the Reserve Bank of Australia (RBA) recently delivered some welcoming news and cut the official cash rate by 0.25%, making now a great time to check your rates with a local mortgage broker. This kind of rate cut is also welcomed by people looking to change homes, such as upsizing or downsizing, or people looking to enter the property market as it further opens up your borrowing capacity.
The Big 4 banks like Commonwealth Bank (CBA), National Australia Bank (NAB), and Westpac have passed on the rate cuts, and we expect more lenders to follow. If your bank hasn’t passed on a cut, maybe it’s time to reach out and see what other options are out there for you.
“However, there is a catch – just because the banks have announced rate cuts doesn’t mean you’re automatically getting the most competitive deal.”
The impact of these cash cuts can’t be understated. For example, a 0.25% reduction in your interest rate saves the average home approximately $90 per month or over $1,000 per year. However, there is a catch – just because the banks have announced rate cuts doesn’t mean you’re automatically getting the most competitive deal. Every lender has different rates and policies, so taking a closer look at your mortgage could reveal opportunities to save even more.
Here is a breakdown of the kind of savings these rate cuts bring and why it’s so important to take advantage of them:
> $500,000 loan: A 0.25% rate cut could save you around $80 per month ($960 per year).
> $750,000 loan: A 0.25% rate cut could save you around $120 per month ($1,440 per year).
> $1 million loan: A 0.25% rate cut could save you around $160 per month ($1,1920 per year).
The numbers really do add up quickly, especially over the life of your loan. In many cases, the savings you can achieve through refinancing can justify budgeting for a new car or holiday and if we can get you a better reduction than just the 0.25% it works out substantially better.
At Loan Market Newcastle CBD, we’re proudly local Mortgage Brokers who specialise in helping local homeowners find competitive mortgage solutions; whether you’re looking to refinance for a lower interest rate, access equity for renovations, or buy your next property, we can tailor a solution to suit your needs and help you take advantage of these rate cuts, just get in touch with us today. Also, unlike the Banks, we MUST act in your Best Interests meaning we work for you not the banks, so finding you a solution with access to over 60 lenders not just 1 gives you more options for your loan.
Heath Williams
Loan Specialist
Email heath.williams@loanmarket.com.au
Loan Market Pty Ltd Australian Credit Licence 390222
Phone (02) 4920 6468