MONEYQUEST CELEBRATES CHRISTMAS IN JULY AND THE JULY CASH RATE ANNOUNCEMENT

Merry Christmas in July from MoneyQuest! That’s right, we are celebrating Christmas in July because the past 12 months have been challenging for everyone, so we are jumping at every opportunity to let our hair down. And, being the first Tuesday of the month, we are also celebrating the July cash rate announcement!

The cash rate is remaining on hold at 0.1% for another month, and it looks set to stay on hold for quite some time. Last month, the Reserve Bank of Australia Board’s statement suggested that the cash rate is unlikely to be increased until 2023/2024.

Several major banks are predicting that it may rise sooner than this, however it still looks as though variable rates are likely to remain flat for at least 12-18 months, which is great news for borrowers. So, with this in mind, our message is two-fold:

• 1. Give refinancing some serious thought knowing that interest rates are likely to remain stable for at least the next 12 months. There are still plenty of great deals out there.
• 2. Now might be the ideal time to make extra repayments on your home loan and pay off as much principal as you can, while you can, if you have the capacity to do so. Also bear in mind that you may have the option of redrawing these advance payments at a later date.

As always, we recommend reaching out to your local MoneyQuest mortgage broker to discuss your options, and to learn more about the current low interest rate environment.

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