MoneyQuest’s August Cash Rate Update
The cash rate has been increased yet again, this time by 50 basis points, making the official cash rate 1.85%.
The Reserve Bank is committed to doing what is necessary to ensure that inflation in Australia returns to target. Therefore, it seems that this upward trend won’t be halting any time soon, with several lenders and economists forecasting that we will likely see rate rises right up until at least the end of the year.
We now know that we are in the midst of a transition period, and it is incumbent on all mortgage holders to reach out to their mortgage broker for guidance during this time.
Your broker can:
– look at your refinancing options and potentially find you a better deal;
– if you have a variable rate home loan, they may be able to submit a repricing request to your current lender, free of charge, on your behalf. This may result in a rate reduction.
Mortgage brokers can also help to calm any feelings of unease clients may be experiencing by explaining repayment changes, mapping out what future repayment changes may look like, and working through the various solutions available.
The time to act is now. Be proactive and leverage the expertise of your mortgage broker during this time.
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