RBA give borrowers a reason to smile

Writen by: on June 5, 2012



Today the RBA announced a further cut to the official cash rate of 25 basis points. This brings the cash rate to 3.5%.

The RBA press release noted the following points –

* Australia’s economy, including unemployment, remains stable.

* European economic stability is a concern.

* Households and businesses continue to show precaution with their spending.

* No new data has been released on inflation, although it was not expected to increase above the 2-3% target

* Monetary policy has the ability to move and help to stimulate the economy when required.

What does this all mean for borrowers? – great news for existing mortgage holders and those wanting to enter the market. Interest rates are more than likely to reduce in the coming months.

Take advantage of reduced rates –

– Keep your repayments higher and make additional repayments reducing the principle and saving interest on your loan.

– Consolidate bad debts, credit cards and benefit from one monthly repayment

– Reduce your monthly repayments and use your savings to help improve your monthly household budget. Update your home, spend some of your interest savings on home renovations to help improve the equity in your home.

 

Written by

A qualified tax accountant and business specialist, Barbara brings a unique skill set to her clients as a finance broker. Barbara’s desire to work with people and help them achieve their goals is what initially led her to the finance industry over eight years ago. She has a genuine desire to share her expertise and experience with clients while simultaneously supporting charitable organizations and community events. Barbara’s favorite saying is: “The real secret of happiness is not what you have or what you receive; it’s what you share.” You can find her on Google+ and facebook or write to her at barbara@financinghope.com.au.