Newsletter – February 2015


In the first meeting of 2015, The Reserve Bank of Australia announced the outcome of its board meeting and, as speculated, it has decreased the cash rate by 25 basis points.

The official rate is now at 2.25%.

In taking this decision it appears the Reserve Bank has reacted to growing concerns around employment, flattening property prices, affordability for first home buyers and the lowering inflation figures. This decrease is likely to spark a fresh round of competition amongst lenders so it is a great time to borrow or review your current finance arrangements.

But before you rush out and sign up with one of the big banks, talk to me! There is a lot of hype and the marketing departments of all these lenders are going into overdrive, telling you how fabulous they are to be passing on the rate reduction.

Some of the banks with the loudest voice had inflated rates to begin with, so reducing their rates has just made them more competitive with the rest – not better.

My job is to keep track of who offers good rates as well as the features that are available on each product. If you secure a great rate, you may find that it actually costs you more down the track because it is too rigid for your needs.

So don’t get caught up in the hype! Just call me and I’ll put you on the right track.

I’ve just helped a client restructure $320,000 worth of debt, made up of their mortgage, credit cards, personal loan and car loans and they are now saving $1089.60 per month.

That’s over $13,000 per year that is now in their pocket instead of their lenders!

So whether you need a new loan or to restructure your existing debt, I’d love to help.

Regards
Michael

0405 113 543
michael@lovehomeloans.com.au