The decision
by the Reserve Bank to keep the cash rate on hold in March is likely to foster a
greater sense of confidence in the domestic economy. However, if last month’s interest rate
movements are anything to go by, the idea of steady rates may be short-lived.
In this
changing home loan environment, the ‘new normal’ could be that lenders shift
their home loan interest rates at any time, in any direction, and by any
amount.
Buyers
and borrowers should prepare for future rate movements or unexpected changes to
their financial situation by factoring in a repayment buffer of at least one to
two percentage points.
Existing
borrowers who are dissatisfied with the direction their home loan’s interest rate
is taking can compare their loan
online to others to see if they’re still getting a good deal.
When
searching for a better loan, borrowers should be seeking out a product that suits their financial needs and has a more
attractive interest rate, fewer fees, and/or offers loan features that can help
them make a larger dent in their debt.
It’s
important to weigh up all the loan options from a wide range of lenders,
including the big banks, smaller banks, building societies and credit unions.
It may be that a better deal exists with a smaller or lesser known lender!
Most lenders calculate interest on a daily balance, but only charge it fortnightly or monthly.
This means that if you change the balance of your loan on any day by making an extra
payment or having your salary deposited, the interest calculated for that day will be lower
than the lender predetermined when your minimum repayments were decided.
Most lenders calculate interest on a daily balance, but only charge it fortnightly or monthly.
This means that if you change the balance of your loan on any day by making an extra
payment or having your salary deposited, the interest calculated for that day will be lower
than the lender predetermined when your minimum repayments were decided.
Most lenders calculate interest on a daily balance, but only charge it fortnightly or monthly.
This means that if you change the balance of your loan on any day by making an extra
payment or having your salary deposited, the interest calculated for that day will be lower
than the lender predetermined when your minimum repayments were decided.
By following theese simple steps, Christmas for you and your family could become a whole lot merrier!