RBA February Update

As expected, the Reserve Bank of Australia increased the official cash rate by 25 basis points to 3.35% at its first monetary policy meeting of the year.

 The move was the ninth rise in as many meetings and comes after Australia’s annual inflation rate reached a 30-year high of 7.8% over the December quarter. Although the rise was expected, it does not minimize the reality setting in. We are here to help you in the best way we can.

What you need to know:

•  Did you know that we can price your home loan for you?

A major advantage of having a variable interest rate is the ability to price it. With the RBA increasing the cash rate, the burden of repayments has landed heavily on mortgage holders, as a result some lenders have increased the margins allowed for discounts. This means we are able to negotiate with lenders, for better interest rates, on your behalf!

•   Can you refinance to another lender?

With lenders being more flexible with the pricing discounts, some lenders rates might be more favourable than others, it might be prudent to consider other options, such as refinancing or fixing your loan. Assuming you can still meet the serviceability criteria, these options might be the best route for you. Your broker will be able to explore these options with you.

•  What do you do now?

Please contact your broker at House and Home Loans directly either via email or mobile. In the event you don't have their details handy, simply call the office on 08 9242 3300, or email mail@hhloans.com.au.

*Please note pricing your loan is dependent on the current product you have, as well as several other factors, including the lender, LVR, etc. Your broker will discuss this in depth with you.