The Reserve Bank of Australia has yet again kept the official cash rate on hold at 1.5%pa. This has been steady for more than two years – but there are signs that these record low official interest rates may be close to the end.
It’s not just Australia – cash 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, it’s time to consider that a rate rise is likely to occur in the not-too-distant future.
So if you’ve been thinking of reviewing your options, don’t leave it too long.
Refinancing while Interest Rates are Low
Have you reviewed the terms of your mortgage recently? There are a number of reasons to ensure you have the best possible deal in place before interest 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 much lower interest rates).
- 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, give us a call.