As of Tuesday 7 April 2020, the Reserve Bank of Australia (RBA) decided to leave the cash rate unchanged at 0.25%. Only recently, the RBA announced a 0.25% out-of-cycle, emergency cut, in response to the economic threat posed by the Covid-19 crisis. This reduced the rate to its lowest level ever.
We are not expecting the cash rate to increase any time soon. It is only expected to increase when the unemployment rate is below 4.5% and inflation between 2% and 3%. It is suggested that this may potentially take up to 3 years.
With lenders currently competing for business, now is a fantastic time to find a better interest rate. By refinancing to another lender you could potentially save thousands each year. If not, you would definitely reduce your debt faster. Debt consolidation loans can also be a great option to consider.
We strongly encourage you to complete at cost analysis of your individual circumstances. This ensures the refinance costs do not outweigh the financial benefits.
If you would like to know more about how Covid-19 is impacting the property market and economy, then click here to read another blog.
Regardless of your situation, we are here to help you. Let’s work together to create a plan to help you and your family through this challenging time!
Our Covid-19 blog is full of more useful information and additional resources, so please make sure you click here to check it out!
If you want to know more about your options please leave your details below and we will be in touch.