BORROWERS Should Check Their Existing Home Loan Interest Rate !
The latest cash rate is a record low of 1.75 per cent and this has seen both variable and three-year fixed rate deals on owner occupier loans plummet with some below the four per cent mark.
Roger Ward said borrowers should be maximising these ridiculously cheap deals while they last and expects offers to become even cheaper with possibly two more rate cuts this year.
The writing is already on the wall for another rate cut by August, with a third now also on the cards.
This would take Australia’s cash rate to a record 1.25 per cent — a figure few would have predicted, even a month ago.
If these cuts transpire, we’re likely to see rock-bottom home loan interest rates of under 3.5 per cent for some borrowers, while rates under 4 per cent will become the new norm.
If you have an older home loan it is worthwhile checking what interest rate you are on as many banks have not been passing on the full reduction. Roger Ward said.
This rate should be under four per cent.
If you are torn on whether to fix or stick with a variable rate, you have a few options.
You can do a mix of fixed and variable — the split is based on how you feel about whether the market has bottomed or not — or stick with variable,’’ Roger said.
Either way it is worth giving Roger a call on 0413 713 534 to see if you can secure a better deal. This is only worthwhile for loans over 2 years old because the rates Roger has secured for new mortgages are always going to be the best available. Older home loan holders, however could benefit from the lower rates.
Call for a free Home Loan Health Check – 0413 713 534
With over 20 years experience in Home Loan Lending and Financial Planning, You can feel confident Cairns Mortgage Brokers will get you the best deal on the market. Call us today: 4057 9746