Posts Tagged ‘Cash Rate’
Big bank mortgages vs the smaller lenders
I was recently asked to provide some perspective on whether to use the Big 4 for your home loan, or a smaller lender, by online news outlet The New Daily. Like most things there is no clear-cut answer as it all depends on your circumstances! You always need to consider your own requirements and what…
Read MoreEntering uncharted interest rate territory
After the most recent reduction by the Reserve Bank in Australia we are now entering into uncharted interest rate territory. Given we have never seen variable home loan interest rates at such low levels, we though it would be useful to show you what this means in dollar terms. Some variable mortgage holders will now…
Read MoreWill interest rates go lower?
As you have no doubt heard probably many times since Tuesday, the RBA has held the cash rate at 2.50% p.a. for a further month. What we are more interested in is where interest rates are heading from here? As on Tuesday, the ASX futures market was estimating that there may be one more cut…
Read MoreHow does the official cash rate affect me
So the RBA at its August meeting decided to reduce the official cash rate by .25% bringing the official cash rate to 2.50%. Already a number of lenders, including some of the major banks in Australia, have advised that they will pass this cut onto their customers in full. A .25% rate cut equates to…
Read MoreA little bit adds to a lot, make sure you are not missing out
Some of my colleagues at Smartline were recently involved in an argument about the size of the gap that has opened up between the RBA cash rate and basic home loan rates since the Global Financial Crisis (GFC). During this friendly argument they all decided to have a guess at the size of the “RBA…
Read MoreDare to dream interest rates could go lower?
When the RBA Board met last Tuesday it decided to hold the cash rate at the current level for another month. Although Australia’s inflation rate appears to be well under control (which could justify a rate cut), the improving global economic outlook has the board wondering if our economy really needs further stimulus. Interestingly, the…
Read MoreFixed v Variable Interest Rate Home Loans In Australia
I have been asked many times over the last few months by my clients whether I think that they should fix the interest rate on their home loan with three year fixed rates being significantly lower than their long term average. The real question that most of my client’s are in fact asking is Do…
Read MoreThe RBA has a difficult problem on its hands
In our last RBA update we mentioned that the current RBA cash rate of 3.00% p.a. was equal to the “emergency” level reached during the height of the GFC. Many have mistakenly viewed this as a reason to be worried about our economy. However, the reason for this rate cut is quite different to the…
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