RBA Announcement released today
RBA Leaves Rates On Hold……Again
Once again, as widely expected, the RBA, at its monthly Board Meeting today, left the Cash Rate on hold at 1.50%. This is now the 25th consecutive month with no change and further extends the record run of no changes.
However, despite the RBA remaining unchanged, Banks on the other hand have recently become quite active with ‘out of cycle’ rate increases to borrowers. Citing increased wholesale funding costs, some of these increases have been as high as 0.40%. Not all Banks have announced out of cycle rate increases, with some either waiting to see market reaction or remaining comfortable with their current rates to borrowers.
If you have been affected by these out of cycle rate increases from your Lender, the best advice we can provide is to not just sit back and accept it. The lending market remains very competitive, so whilst your current lender may not truly value your business, there are plenty that will with some very sharp and competitive rates on offer. Particularly for those who have more than 20% equity in their homes.
To see if you might be able to get a better rate on your home loan, a few minutes on the phone with one of our Mortgage Advisers will provide you with the answer.
Mark Lewis, Managing Director