Interest rates aren’t necessarily on everyone’s minds at this time of year, with most of the country looking towards Flemington in Melbourne, the members of the Reserve Bank of Australia had their eyes firmly on the official cash rate.
The odds were always in favour of the Reserve Bank of Australia keeping the official rate on hold. Since August last year the cash rate has remained at the all-time low of 1.5%. And all bets are on interest rates remaining at that level for some time.
There’s a lot of good news in the Australian economy – let’s start with the international trade report for September. Australia’s surplus increased to $1.745 billion from $873 million, breezing past expectations for a smaller increase to $1.2 billion. Reserve Bank governor Philip Lowe says, “it’s time to turn a new page”. The RBA is increasingly confident that the slowing effect that the end of the mining boom had on living standards is behind us.
Low Interest Rates Help to Pay off Your Mortgage Sooner
Around this time of the year, many people look at their own home and mortgage. If you have a look at the life of your mortgage, there are a number of ways you could pay it off sooner that won’t affect your lifestyle whatsoever and with interest rates at there lowest ever, there is no time better than now.
Here’s a little trick – why not round off your monthly payments upwards – say you pay $2161 per month. Paying the extra $39 a month may allow you to pay off your mortgage up to a year earlier.
And of course, if your horse comes in today, why not put that money towards your mortgage – more equity in your home can lead to an investment property, so you win either way.
If you have any questions, we’re always here to help.