Are you ready to save money on your home and investment loans yet?
Another blow has been dealt to mortgage holders with a recent increase of 0.25 percentage points in interest rates.
In an effort to tackle persistently high inflation, the Reserve Bank board has chosen to maintain pressure on borrowers. The consumer price index for the March quarter revealed a significant deviation, standing at seven percent, well above the RBA’s targeted range of two to three percent.
Subsequently, the less reliable monthly index for April exhibited an unexpected surge of 6.8 percent.
With this recent adjustment, the cash rate has now reached 4.1 percent, its highest level since April 2012.
This June hike represents the twelfth consecutive increase since the central bank initially initiated interest rate hikes in May of the previous year.
RBA governor Philip Lowe has additionally indicated the possibility of further tightening of monetary policy.
“Some further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve,” he said in a statement.
“The board will continue to pay close attention to developments in the global economy, trends in household spending, and the outlook for inflation and the labour market.”
In a closely contested decision, the RBA board faced a combination of contrasting economic indicators. While inflation persists at elevated levels, the impact of interest rate increases is evidently dampening economic activity, leading to a slowdown in consumer spending and a weakening labour market.
Although the moderate growth in wages was unlikely to cause significant concern for the RBA in its June deliberations it’s unclear what effect the Labor Federal Governments new industrial relations laws and recently announced award wage increases due from 1 July 2023 will have on future RBA rate decisions.
Why should you contact our Finance Broker to review your loans?
With Banks quick to pass on interest rate rises and slow to negotiate competitive rates with their existing clients, now is the ideal time to book in a call with John Marzin our Principal Finance Broker. Call 1300 300 013 or see our webpage HERE.
A call with John could save you thousands in interest! John is able to secure low rates from 5.24% pa and lender cash back offers as much as $4,000.
It doesn’t pay to stay loyal to your Bank. Take advantage of our Finance Brokers to:
- Access over 40 lenders all with unique rates and incentives.
- Play lenders off against each other for your benefit.
- Do all the paperwork for you making the process easy and stress free.
- Work in your best interest as legislated by ASIC and the Australian Government.
- Keep watch of the home loan market and interest rates for you.
- Can provide asset protection via the use of different lenders to ensure your home is always protected.
- Complete an annual pricing request on your behalf to ensure you maintain the best possible interest rate for your situation.
- Can increase your borrowing power by having access to multiple lenders and lender policies.
- Will be with you for the long haul ensuring you are able to grow your wealth and reduce debt fast by introducing you to advanced debt management strategies the Banks don’t promote.
- We don’t get paid unless the loan is actually settled so will work harder for you to get the best deal for your situation.
If your loan is NOT currently fixed, ‘Do you know your interest rate?
No? You need to call us for a rate review.
Yes? You need to call us for a rate review.
Not sure? You definitely need to call us for a rate review.
Are you coming off your fixed rate in the next few months?
Yes? You need to call for a rate review to plan in advance for your next loan.
With so much finance and property doom and gloom media hype at the moment, let us put a smile on your face by reviewing your current finance products to see how we could help reduce your mortgage repayments.
— June RBA Update —
More Interest Rate Pain!
The 12th consecutive increase in interest rates by the Reserve Bank of Australia is really going to sting many mortgage holders!
The cash rate increased another 0.25% this month to 4.1% and is the highest level in 12 years.
Look out new mortgage repayments!
Read the full statement from the RBA here.