Now that the May elections are over, we are finally getting news from the government about new policies, dramas, etc etc. But what we really want to know is how will all this change affect us? Will the new 1.25% interest rate set by the RBA help us?
Now, before you go celebrating that the interest rate has gone down and now you have extra cash, think long-term to make sure you don’t fall into variable rate traps.
Here’s my tip to you.
Just because the interest rate is historically at its lowest doesn’t mean you’ll automatically pay less for your Mortgage repayments. The banks will never make it that easy when it comes to repayments! You physically have to ring them and request to have your monthly repayments be adjusted.
But I need to stop you there. Interest rates will forever go up and down. If you’re getting by with your current monthly repayments, I would recommend not reduce it. In the long run, you’d be paying much less in interest and take a shorter time to pay off your Mortgage.
If you’re in a financial struggle, take this time to consult your Mortgage specialists to adjust your repayments.
Keep in mind that this low interest rate won’t stay forever, so strategise with a long term goal in mind!
If you need a more detailed explanation, have a read of this article.
Good time to invest or buy a property.
This is a good time to seriously think about purchasing your first home and/or investment property. For the last couple of months, buyers and sellers have been holding their breath because of the volatility in the government (elections and new policies). We absolutely understand how such an uncertainty can cause you to feel unsure about your decisions. And finally that’s over!
I would recommend you do some research and get in touch with a expert real estate agent to find out how to tackle these changes in the Real Estate Market. Everyone’s financial situation is different, let alone their preferences in properties!
If you have questions about what to do next, get in touch. The last thing I would want is for potential buyers and sellers to miss out!
