How to maximise falling mortgage rates

The Reserve Bank of Australia (RBA) had a back-to-back interest rate cut this year, setting the cash rate at a record low of 1.00%. Lenders had started applying the cut to their variable home loans. This is good news for Aussies with mortgages because this means borrowing large sums of money becomes cheaper.

If you are having hard time keeping up with the falling mortgage rates and thinking of the best step to make the most out of these cuts, here are some tips:

Refinance to a lower interest rate

It’s always worth checking and comparing the deals available in the market. Hundreds of products are being offered by many lenders out there. Shop around and see if your bank can match the deal you have found. As a mortgage broker, I can help you find the most suitable deal for your current situation and help you switch to it.

Make extra repayments

Lower rate means lower repayments. The money you can save from it can be spent on electricity bills or groceries. However, if you wish to get out of debt faster and save yourself from more interest in the long run, don’t change a thing. Just keep paying the same monthly repayment and this will now count as extra repayments.

Save for the future

While current rates keep getting low, there is no assurance that there won’t be any rise in the future. Keep the money and create a buffer savings when your repayments increased.

The takeaway

To fully take advantage of the falling mortgage rates, you need to know what your home loan interest rate is. You can always pick up the phone and ask your lender or mortgage broker about it. Take advantage of the hundreds of deals in the market that you can compare and see what will fit your current situation.

If you are a busy person and don’t have much time to do all of these, feel free to give me a call on 0408 081 082. I can conduct a complimentary home loan health check and advise you on the steps we can take to fully maximise the current interest rates that will work for your financial situation.

Disclaimer:

Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

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