Three Key Things You Need to Know and Do to Take Advantage of the Recent Cash Rate Cut

As The Reserve Bank of Australia (RBA) announced the widely expected cash rate cut by 0.25%, combined with the optimistic view that more cuts could happen in the future – we can now take a breath and explore what we need to do when interest rate is lowered, and how we can take advantage of it.

Some of the important things you should know and considered are:

• Cash rate cut does not automatically mean interest rate cut – your lender might not necessarily as onto your home loan. Furthermore, the lending market is becoming more and more competitive.
• Repayment amount does not automatically lowered after an interest rate cut – depending on your repayment structure, you might have to manually adjust your monthly repayment schedule to take advantage of the lowered interest rate.
• Different lenders might provide additional incentives – you should explore as many lenders as possible to compare the incentives they provide and consider refinancing with the lender that has the benefits most suited for your situation.

Ready to Review Your Mortgage but don’t know where to start? Book a free, no-obligation 15-minute conversation with one of our mortgage advisers, Loreen Dyer. We’ll help you understand where you stand, explore your options, and make sure your loan still works for you.