The RBA have decided to leave the cash rate unchanged at 4.75%
The RBA Governor Glenn Stevens noted that there will be possible inflationary pressures as a result of higher utilities costs, rising food costs due to the natural disasters in QLD and high prices at the petrol pumps.
We believe that this higher costs of living will force the Reserve Bank’s hand in moving interest rates in the second half of this calendar year to stifle consumer spending and curb further inflationary pressures.
WHAT DOES THIS MEAN TO YOU?
With all the above to consider, there is no better time to have a home loan health check.
The last 2 years have seen the Australian home loan market go through some major changes in the way in which lenders approach home and investment loan products. We have seen lenders increase interest rates above the Reserve Bank increase and we also saw lenders reduce Loan to Value Ratios (LVR’s) as a consequence the uncertain market.
In the past 3 months however, we have seen LVR’s return to more “normal” levels as well as increased competition between lenders, which has been a welcome change for the consumer.
Now is the time to ask yourself the following questions, as a review of your current home loan may be overdue.
- Has it been more than 12 months since you have reviewed your home loan?
- Are you unsure whether or not your current loan is still the best one for you?
- Are you looking for ways to reduce your monthly repayments or outgoings on your home loan, personal loans or credit cards?
- Are you looking to change your current situation, in regards to work or family?
- Do you want to build wealth by accessing any potential equity in your property?
Over time, your personal and financial situation may change. You may get a pay rise, or you might want to start a family, or look at starting to invest in either property or shares. As your needs and priorities change, you’ll probably find the right home loan product for you will change. A home loan health check will ensure your current loan suits your current needs.
In stable economic conditions, a variable interest rate might look more attractive, while in more volatile periods you could prefer the predictability of a fixed interest rate. Refinance your home loan to suit the economic times. We can also look at the option of splitting your loan to give you both some amount of security without compromising the flexibility of a variable product.
Access to an Ark Total Wealth Financial Planner
As well as giving your home loan an overview, we will arrange for an Ark Total Wealth Financial Planner to give you a complementary financial planning meeting valued at $395. (including but not limited to Investments, Residential Investment Property, Superannuation, Insurance and Business Planning.)
Michael Luca and Danny Luu