As you may be aware, the Reserve Bank of Australia (RBA) lowered the official cash rate today to a historic low of 0.5% (a 0.25% reduction).
As we send this, multiple lenders have already announced that they will be reducing their variable rates by the full 0.25%. However, before deciding to refinance from your existing lender, this is a good time to review your rates and more importantly, the DISCOUNT that you are currently receiving. Contact us to look at ALL the options available for you.
Why was the heading: DON’T PANIC?
Firstly, I’ve been re-reading the wacky crazy trilogy (of 5 books) The Hitchhiker’s Guide to the Galaxy with the major piece of advice from these books’ being DON’T PANIC.
Every time the RBA changes rates, we see a range of reactions, most of which is stemmed from worry (from whether your lender is going to pass the full rate cut to how your rates now compare with that of other lenders). We always suggest that clients wait to see what all lenders do and discuss with their broker before they decide to change lenders. The reality of the situation is that sometimes the discount percentage that you are on outweighs the change in rate from another lender not passing on the full cut.
Secondly, it’s been a crazy past 2 months with the news of the Coronavirus (COVID19) affecting many people physically as well as having a major impact on international stock markets (over the last few days). Our thoughts and prayers go out to everyone who has been affected by the virus.
While we can only hope for the best with regards to controlling the further spread of COVID19, we can definitely help to review your loans to try to save you additional money.
So, DON’T PANIC and talk to us!