For the third month in a row, the Reserve Bank of Australia (RBA) has increased the official cash rate, this time by a further 50 basis points to 1.35 per cent, as it tries to curb rising inflation.
Read today’s official statement on the RBA’s website.
In May, the RBA lifted the cash rate to 0.35 per cent, then in June, the board hiked it up by 50 basis points to 0.85 per cent.
Today’s decision could add further pressure, especially for those on variable loans or with fixed-term mortgages ending soon. Many Australian home owners locked in low fixed rates over the last couple of years that will start to roll off them as soon as next year.
If you fall under one of these umbrellas, then it’s time for us to chat about your strategy and options. Fornaro are best placed to review your home loan and ensure it remains competitive and suits your specific financial situation and goals. Remember that it is not always just about interest rate; there are many other factors that determine what is the best option for you and your individual situation when it comes to your home loan. Lenders have different home loan policies and products to suit different borrowers.
Keep in mind that the RBA has also indicated the cash rate will likely increase further depending on what the economic data shows over the coming months. It’s important not to be complacent and to consider your position ahead of time.
At Fornaro, our job is to work with you to establish your goals and drivers and negotiate finance solutions that assist you to get where you want to be.
Contact your Fornaro team today to discuss your situation.