RBA Holds Cash Rate at 4.35% - Is Your Home Loan Still Competitive?
RBA Holds the Cash Rate at 4.35%
The Reserve Bank of Australia (RBA) has today announced it will leave the official cash rate unchanged at 4.35%.
While today's decision means there is no immediate change to variable home loan repayments, it doesn't mean the lending market has stood still. In fact, competition between lenders is increasing, creating opportunities for many homeowners to save money.
What We're Seeing in the Market
Over the past few months, we've seen lenders become increasingly aggressive in attracting quality borrowers.
Some of the most competitive owner-occupied variable rates are currently being offered by lenders including:
People First Bank
Macquarie
ME Bank
MyState Bank
Auswide Bank
For borrowers with lower Loan-to-Value Ratios (LVRs), we're even seeing selected lenders offer rates from 5.99% p.a., subject to lending criteria and individual circumstances.
Just as importantly, we're finding that the Big Four banks are also sharpening their pencils.
Many major lenders are offering discretionary pricing discounts to retain existing customers. These discounts aren't always automatic, which means it pays to ask the question. If you've been with your bank for a while, there's a good chance your rate could be reviewed.
When Was Your Last Home Loan Review?
Many Australians take out a home loan and don't review it for years. During that time:
Interest rates change.
New lenders enter the market.
Your home's value increases.
Your financial circumstances improve.
All of these factors can make you eligible for a more competitive loan.
If you haven't had your mortgage reviewed in the last 12 months, now is an excellent time to see whether your current loan is still working for you.
A Home Loan Review Isn't Just About Saving on Interest
Reviewing your mortgage can also help you achieve other financial goals.
Many of our clients are using the equity they've built in their homes to:
Renovate kitchens and bathrooms.
Purchase caravans and other lifestyle assets.
Consolidate higher-interest debts.
Improve monthly cash flow.
Purchase investment properties.
In fact, we're currently helping several clients unlock equity to purchase caravans while still maintaining a healthy financial position.
Let Us Do the Hard Work
Whether you're with one of the major banks or a smaller lender, we'll compare your current loan against the market, negotiate with your existing lender where appropriate, and explore refinancing options if they offer a better outcome.
The cheapest rate isn't always the best loan—but having the right loan structure and a competitive interest rate can make a significant difference over the life of your mortgage.
Ready for a Home Loan Health Check?
If it's been more than 12 months since your last review, we'd love to help.
A complimentary home loan review could uncover opportunities to:
Reduce your repayments.
Improve your cash flow.
Unlock equity.
Put you in a stronger financial position for the future.
Contact Principal Mortgage Broker Shona Stephenson at Best Foot Forward Mortgage Solutions today to book your complimentary Home Loan Health Check.
The information contained is general information only and does not consider your objectives, financial situation and needs. Please talk to us if you need a fast-tracked home loan, and we can help you find a lender that has the processes in place to process the application quickly. We strongly recommend that you do not act on any information provided on this website without individual advice from your trusted advisor. You should also obtain a copy of and consider the Product Disclosure Statement for all financial products before making any decision.
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