By Larry Hirsch | February 20, 2015 | 1 Comment
Have you been hearing lots of information about the Reserve Bank and rate cuts but don’t understand what that means? and how or if this benefits you? Don’t worry, you’re not the only one.
To help, We thought we’d write a little bit of information to help you understand how the change in the cash rate effects YOU.
Firstly, If you have a variable rate home loan;
your interest rate should drop by at least that amount reduced by thy RBA.. most recent rate cut was .25
This means your monthly repayments will reduce, saving you hundreds of dollars per annum.
Secondly, We would recommend that you should attempt to keep paying your monthly repayments that you’re used to (if you can afford to) on your Owner Occupied home loan
Because the surplus will reduce the term of your loan exponentially!
If you would like to know what interest rates are currently available or how else you can reduce your spending
Feel free to contact us on
9307 2444 or larryh@chartermortgage.com.au
B.Com B.Acc CA. H.Dip.Tax Dip.Fin Serv MFAA Credit Adviser
Its hard to know how the market is going to go, I'm glad I had a variable rate as it kept going down, but would want to lock in these low rates!
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