It was a big surprise for everyone when the Reserve Bank of Australia made an announcement in its first meeting of 2015 that it is making a decisive cut of 25 basis points to the official cash rate.
The official cash rate is one of the major factors that guide the interest rates that banks or lenders pay when they borrow, or charge when they loan money. Essentially, the cash rate affects you, your loans, credit cards, savings accounts, etc!
Below are the list of lenders, their respective interest rates trimmed, and the dates when these changes will take effect.
|Lender||Rate Type||Rate change||Effective Date|
|Bank of Melbourne||Variable||0.25%||20/02/2015|
Home loan market lenders nowadays are notably very competitive and aggressive. It will also be most advantageous to do a wealth check for your home loans. This is because even if your lender makes the rate cuts, it is also timely to ensure that your home loan is still reasonable and still right for you.
You can thus ask your bank or lender for a lower rate offer and see if they are indeed willing to do so. You can also ask for an expert second opinion from an accredited mortgage broker. Mortgage brokers can help you save time and effort and might even help you get an even better deal from your current lender just by asking the question!
Share your thoughts on this rate cut. Comment below.