RBA Interest rates…no change 19 months – should I refinance?

Over the last year and a half, the RBA has kept interest rates on hold for numerous reasons, the main reasons would appear that there seems to be general consensus amongst experts that economically, the country is moving along nicely (which it is), as well as keeping the growth rate of residential real estate in check, which has been very robust in some geographic areas (which it did).

September saw a number of lenders increase their housing interest rates outside of the RBA cycle - back to normality as banks have once again started to look at their risk portfolio against profit margins and making decisions based on that, which is what they have traditionally done up until around 15 years ago when the RBA’s decisions on rate movements became the hot topic and big lenders simply capitalised on this (which they have)

So should you refinance now?

If you have a home loan, and it starts with the number four (4.) then yes you should be talking to a broker, it’s as simple as that. You most likely could be eligible for a home loan with a better interest rate potentially saving you thousands each year in repayments

We have had borrowers recently come to us oblivious to the fact they have been paying 4.90% (or more in some cases) for their owner-occupied home loan when current market rates are sub 4.0%! So on a home loan of around $350,000 that means a saving of around $3,150 per year, or around $31,500 over the next ten years….that’s real money!   

So yes, talk to an experienced broker to explore your options on refinancing and lock in a more appealing home loan interest rate now whilst lenders are still very competitive and before they ALL increase lending rates – it’s going to happen at some point, so the more you can save in the short to medium term, the better off you will be. 

Please feel free to call me on 0438 041 111 to organise a time for a confidential discussion on your own situation and how we may be able to help save some real money by refinancing.

As always, enjoy life, work hard, play safe and remember that we are always here to help you
‘Take the Confusion Out of Lending’ 


Peter Vinci - 0438 041 111