What should I do about the latest RBA rate drop?

Salt FinanceFor almost everyone, the RBA’s latest decision is definitely a positive one, which will create more options and opportunities for home owners and investors.

Before this last rate decrease, there were some wonderful opportunities to purchase or refinance at more than 1% below all the major banks’ standard variable rates. We would like to see that continue, but will need to wait to see how all other lenders on the market adjust as well. My instincts tell me that the bridge will be somewhat narrowed between the very best rates and the major banks’ rates, at least for the short term.

That being said, here is my simple advice on what your next move should be depending on your specific situation:

  1. Act now: If you already know you are paying more than you should, are sick and tired of it and determined to do something about it, click here to start a conversation with Salt Finance to assess what options are available and put yourself in a better place. After all, it’s your money and there is no reason to pay the bank any more interest than you need to.
  2. Assess your position: If you aren’t quite sure what you are currently paying or  what you should do at this stage or if you have any upcoming finance requrements, I would recommend the following steps:
  • Get in touch with us now. Let us know that you are following the below steps. We’ll keep you accountable and guide you in the future.
  • Find out what you will be paying after this latest rate reduction with your current lender or contact us and we’ll advise you.
  • Consider other monthly personal loan or credit card commitments that you may be able to consolidate into one easy manageable repayment – get your statements out and add them up! You’d be surprised just how much they could be costing you!
  •  Let us know what your current position is. Please remember to let us know of any future or upcoming finance needs as it is highly relevant to the assessment of your options.
  • At that point, provided your needs aren’t urgent, we’ll wait until the dust settles on this latest reduction and all lenders have announced their new rates. If your needs are urgent, we’ll act immediately.
  • Lastly, we will assess and present your best options based on your individual situation.

3. Do nothing – If you’re already receiving more than 1% below the major banks standard variable rates and have no impending finance requirements to consolidate, renovate, upgrade, invest or release equity for any reason and you don’t wish to fix any part of your loan, then rightly you can do nothing and just enjoy the latest rate reduction.

As per point 2 though, should you have any upcoming needs, I would encourage you to click here and start a conversation with Salt Finance to best prepare yourself and find out what your future options may be.

I hope you have found this helpful. Please leave your comments or questions below. Alternatively, feel free to email me directly at marco@saltfinance.com.au

Marco Cipri