Mortgage market shake-up as lenders cut interest rates
The Reserve Bank’s recent decision to cut rates by 0.25 percentage points was big news. This newsletter looks into how lenders have responded and shares some other significant stories.
- Lenders cut interest rates
- Borrowers embracing refinancing
- Quick guide to ALP housing promises
- Property prices set new record
Here are three tips to bear in mind in this downward interest rate environment:
- Think about refinancing. If your lender is not making the right competitive moves with your interest rate, I can compare the market for you and search for better options.
- Review your new borrowing power. Lower interest rates can increase how much you can borrow, which may open up new opportunities to upsize, renovate or invest. Just be careful not to overextend yourself.
- Use your savings wisely. Consider what you do with the money you save with a lower rate. Splurging on treats may be satisfying, but investing the money, making extra repayments on your loan or building the balance in your offset account may be a smarter long-term option.