Official Interest Rate Remains on Hold – but for how long?
October 2018: RBA Cash Rate Decision Announced
The Reserve Bank of Australia has yet again kept the official cash rate on hold at 1.50%pa. This has been steady for more than two years – but are there are signs that this record low official interest rate may be close to the end?
Interest rates around the world have been at a record low as well. But with the US raising their official interest rate for the first time in many years, is it time to consider that a rate rise is likely to occur in the not-too-distance future.
Following announcements of interest rate hikes in previous weeks from 3 out of the four big banks, economists believed that this would delay any official cash rate increases, and that the official rate is likely to remain for a while yet.
However, only time will tell and regardless of future cash rate decisions by the RBA, it's always a good time to review your loan and determine whether refinancing could benefit your current situation.
The many benefits of refinancing
There are a number of reasons to ensure you have the best possible deal in place before rates begin to rise. Refinancing can help you:
Save money. The first thing to look at is the possibility of securing a lower rate.
Consolidate your debts. You can combine all your high interest debts into your mortgage (which typically has a much lower interest rate).
Invest. Use the equity in your home to finally get that renovation project happening – or, to buy an investment property.
Pay your mortgage off faster. You’ll benefit to switch to a loan that has 100% offset account, flexible repayment options, and free early repayments.
The next step
With all lenders tightening their mortgage approval procedure, you first need to ensure you have all your ducks in a row before applying. We work with lenders daily, so we know exactly what they need. To start the process, get in touch with us today.
Until next month,