Tuesday 1st March 2016Don’t Just Wait for RBA to Take Rates Lower
Consumers should be actively seeking a better deal from their lender rather than waiting for the Reserve Bank of Australia (RBA) to further lower official interest rates.
Finsure Managing Director John Kolenda said the RBA has kept its cash rate at a record low of 2.0 per cent since May last year and a strong argument remains for cutting rates during 2016.
But Mr Kolenda said the range of competitive loan products in the current market meant consumers had an opportunity right now to secure a lower rate from their lender.
“Home loan customers are best advised to be proactive rather than wait and see whether the RBA takes any action going forward,” he said.
“While we expect any movement from the central bank to take rates down, it’s also uncertain whether lenders will pass on any reductions in full or even at all.
“But it remains a competitive market and lenders are listening to their customers as they want to maintain their market share.
“I would definitely talk to a mortgage broker as they are the only ones who have access to a range of lenders.
“Now with the rate differentials being so wide across lenders you can only get the best view of products by doing extensive research.
“The lending landscape has changed dramatically in recent times but an experienced broker is best prepared to help you navigate this minefield.”