After 2 Rate Cuts, Time to Review Your Home Loan
Can you believe that we have had two rate cuts in the past few months? The RBA has reduced interest rates by 0.5% in this period, dropping the official cash rate to an historic low of just 1.00%.
Here is the thing that many borrowers don’t realise, however, not all lenders have passed on the full 0.5% decrease. If your lender has yet to pass on the savings to you, then now is the ideal time for a home loan review to make sure you are getting the best deal on the market.
If you have a mortgage of $400,000 over 30 years, and you are currently paying 3.5% interest, your monthly repayments will be $1,796. However, the latest rate cuts mean you could be saving a lot – a rate reduction of 0.5% would see your repayments drop by more than $100 to just $1,686 per month. Over the life of the loan, you will be saving around $40,000 in interest – all thanks to these two interest rate reductions.
This is the perfect time to shop around for a better offer, and the best way to do this is with a trusted broker on your side. Everyone’s situation is different, whether you are a PAYG employee or own your business, it can impact on your loan application, as can the number of children and spending habits.
A broker can find you the perfect loan for you and your specific situation at a great interest rate, with all the inclusions and featured you need – saving you both time and money and keeping the whole process streamlined and stress-free.
Frequently Asked Questions
What is the significance of the RBA’s rate cuts?
The RBA has reduced interest rates by 0.5% in recent months, dropping the official cash rate to an historic low of 1.00%. This creates an ideal environment for homeowners to review their home loans and potentially save on interest payments.
How much could I potentially save with the recent rate cuts?
If you have a mortgage of $400,000 over 30 years at a 3.5% interest rate, the recent rate cuts could reduce your monthly repayments by more than $100. Over the life of the loan, you could save around $40,000 in interest.
What should I do if my lender hasn’t passed on the full rate cut?
If your lender hasn’t passed on the full benefits of the rate cuts, it’s time to explore better options. You can consult a mortgage broker to find a loan that suits your specific situation at a great interest rate.
How can Zippy Financial assist me in this situation?
Zippy Financial can guide you towards the best deal available, potentially saving you thousands. They specialize in home loans, property investment, and vehicle finance.
What are the risks of not reviewing my home loan after the rate cuts?
Failing to review your home loan could mean missing out on significant savings. You may continue to pay higher interest rates and monthly repayments than necessary.
Is it complicated to switch lenders?
Switching lenders can be a streamlined and stress-free process with the help of a broker. They can find you the perfect loan for your specific situation, saving you both time and money.
Get in Touch
Seize the moment and save big! The recent rate cuts have created an ideal environment for homeowners to review their home loans. If your lender hasn’t passed on the full benefits, it’s time to explore better options. Zippy Financial is here to guide you towards the best deal available, potentially saving you thousands. Don’t hesitate, contact us now and secure your financial future!
Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.
About the Author:
Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.
Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).
Disclaimer: This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether business, health or financial.