With another 0.25% Cash Rate increase, we’ve endured another week of dreaded finance news headlines. Last month we commented on reaching the peak of the Cash Rate mountain, we are now optimistically hoping that there is some flat track ahead. The impact of the economic climate internationally (especially in the US over the past week) may also add further pressure to restrain the aggressiveness of Reserve Bank’s monetary policy in the short term. Philip Lowe, Australia’s most unpopular Governor, has signalled that the Reserve Bank are ‘now closer to a pause’ on rate hikes.
One thing we can control is ensuring you have a fair interest rate based on your property value and loan amount. It all starts with a free valuation, which we can handle for you. Lenders promote larger interest rate discounts (and cash backs) based on loan to value ratio (LVR). The lower your borrowing percentage is against the value of your property, the greater discount margin you should be able to obtain.
For existing home loan clients; we’ll give your lender a chance to treat you fairly, and if not then we will look at who else actually wants your business, and if a new lender is in your best interest. Of course, the balance of your loan will influence how willing your existing lender is to retain your business, or how beneficial switching lenders may be.