COVID19 Edition…..What To Do….
The world as we have known it has changed dramatically these past few weeks with this global pandemic affecting pretty much everyone around the world, regardless of race, background, status or age. Many Australians have taken far too long for the ‘Stay Home’ message to sink in and to do their bit to help keep Australians safe. Too many have the “I’m OK mate, won’t happen to me” attitude, but at time of writing this piece, over 40 Australians have passed away from COVID 19 – that’s 40 too many!! Stay home!
Whilst the Government has restricted trade across most sectors of the business community, banks and brokers are considered providers of an essential service, so for us it is business as usual, though we can tell you it is anything but usual….
The RBA dropped the official cash rate twice last month to an historic low of 0.25% and made it very clear - that is it! The cash rate will NOT be getting any lower, so it is now up to the Australian Government and Aussies at large to do their bit to get the country moving again.
Most lenders have responded and have dropped their rates accordingly, with some offering very attractive 2 and 3 year fixed rate offers for home loans. Now is a good time to actually think about doing something with improving your home loan situation…it’s highly unlikely rates are going to get much cheaper.
Here’s some inspiration:
If you currently have a home loan with a $400,000 balance, on a variable rate of say 3.30% (very common at the moment), we could potentially switch this to a fixed rate for 2 years in the low 2% range!
The outcome would look something like this
- Home loan balance $400,000 @ 3.30% interest x 24 months = approx. $26,400
- Home loan balance $400,000 @ 2.29% fixed for 24 months = approx. $18,320
- Approx. savings in interest costs for the 24 months is around. $8,080 less any fees
These are real savings to be made based on current offers, so if you are thinking about saving money in the short-medium term whilst we all deal with the fallout of COVID 19, then reach out as we are here to help.
I am available on 0438 041 111 or email me at email@example.com and happy to arrange a confidential phone or video discussion about your current home loan, all from the safety and convenience of your home.
Please enjoy our articles this month … riveting reading for all!
As always, enjoy life, work hard, play safe and remember that we are always here to help you
‘Take the Confusion Out of Lending’
All the best
Peter Vinci - 0438 041 111