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.



This article is written to provide a summary and general overview of the subject matter covered for your information only. Every effort has been made to ensure the information in the article is current, accurate and reliable. This article has been prepared without taking into account your objectives, personal circumstances, financial situation or needs. You should consider whether it is appropriate for your circumstances. You should seek your own independent legal, financial and taxation advice before acting or relying on any of the content contained in the articles and review any relevant Product Disclosure Statement (PDS), Terms and Conditions (T&C) or Financial Services Guide (FSG).

Please consult your financial advisor, solicitor or accountant before acting on information contained in this publication.