Thursday, March 3, 2016 / Services
This week the Reserve Bank of Australia has announced that they will be leaving interest rates unchanged, at a rate of 2%.
This 2% interest rate is becoming familiar to Australians, as this will be the 11th consecutive Month with this rate.
2% is a record low for interest rates, and the fact that it has been kept at this level for almost a year now is also quite significant.
If you look at the last 25 years of RBA Interest Rates (also referred to as the Cash Rate) you can see that we are in historical territory.
For the last 10 months Australians have been enjoying the lowest interest rates that we have ever had.
This has had a significant effect on the average family mortgage.
Home owners stand to be saving a significant amount on their interest repayments during this period, however…
There are however some mortgage holders who have had less cause for celebration.
Despite the fact that the cash rate has been sitting at 2% for the last 10 months, this has not perturbed some opportunistic Bank’s from bumping up their interest rates a little for a larger profit margin.
Not every bank has taken this tactic, so now more than ever before it is especially important to shop around for the best possible rate on our mortgage.
In these situations the advantages of a mortgage broker is even more apparent.
When you are receiving your finance advice from a single financial entity, such as a Bank, you are only receiving the available rates that they have.
These available rates may have been increasing recently even though the official Cash rate has been remaining stable at 2%.
A mortgage broker has access to practically every institution’s rates and products. They can navigate you towards the best available rate in the market, not the best available rate from one bank.