The Reserve Bank has cut interest rates by 0.25 of a percent taking the official cash rate to a historic low of 3.00%. How much of this will be passed on by the lenders will be decided over the coming days by each individual lender. Many commentators still think we will get further rate drops later in the year - they may be right, they may be wrong. There are just so many different opinions flying around at the moment that you can find 10 different commentators who will have 10 different opinions.
What I do know, is that right now we have historically low interest rates. The likelihood is that some time in the coming few years they will be higher than they are now - when and how much is just guesswork at this point.
I get many questions from clients along the following lines:
Should we consolidate debt and refinance?
Is now a good time to buy an investment property?
Is now a good time to buy our first home or sell our current one and buy another?
Plus many other questions.
I will answer all these questions with one answer - Every person’s situation is unique and totally different.
Lenders policy and criteria for borrowing are changing on an almost daily basis. What was doable yesterday is not necessarily the same today, what is doable today may not be the same tomorrow. My job is to keep up with these changes for you.
If you have one of these questions, or any others, I am happy to talk to you about the best options for you. What is right for one does not necessarily suit everyone. While on the surface people’s situation can look the same, often their financial positions are very different. Please feel free to contact me if you need to, either by phone or email. I am here to help, so if you need it, just ask.
Take care everyone and have a relaxing and enjoyable Easter break.
