As expected, the Reserve Bank of Australia has decided that the official cash rate will remain at the historic low of 0.25%.
Last month, RBA Governor Philip Lowe has told the House of Representatives Standing Committee on Economic that this rate is likely to remain at this level for up to 3 years. This is good news for people with a home or investment property loan.
Have you considered a redraw facility?
Do you occasionally make additional repayments to your home loan? A redraw facility may be perfect for you.
A redraw facility is a feature that lets you withdraw any additional or excess repayments you may have already made towards your home loan. Called ‘available redraw’, it refers to the amount you are ahead of your scheduled home loan repayments.
The benefit of this facility is clear – should you need some extra funds, you can access your own money, while knowing you’re still up-to-date with your home loan repayments.
There are some considerations: when you redraw from your excess home loan repayments, you’ll need to wait 1-2 business days for it to be processed. It’s possible your provider may charge a fee, as well as imposing limits on how often you can redraw.
If you want to know more about a redraw facility or any other aspect regarding your home loan, don’t hesitate to contact us.
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