The Reserve Bank’s monthly meeting on 5 October has again confirmed the official cash rate will remain at 0.10% – continuing its stated view that the cash rate is not likely to increase until 2024.
It has become apparent that Australia’s grace period of bottomed out interest rates will soon end, following Australia’s vaccination and a swift return to trading in light of restricted movement and operating conditions.
As previously covered, this period has seen widespread applications for mortgages and business loans, leading to extensive processing delays across the entire lending sector. Competition between banks and second-tier lenders has seen interest rates gradually rise, despite the best efforts of the RBA to control them for the benefit of the economy, meaning that Australians should expect interest rate increases in due course. In response to this, individuals and businesses should take the time to review their mortgage and any other existing loans while they still can.
With this in mind, it’s arguable that there has never been a better time to refinance your current loan or mortgage and secure cheaper fixed rates while they’re still available. Here’s how Morrows can help.
Refinancing and Lending Benefits
Morrows Lending Solutions has been given access to several loans and refinancing options that could prove beneficial when reviewing your options.
Offers available are designed to grant homeowners respite and priority access to value in the form of cashback payments ranging from $1,000 up to $4,000 on eligible loans.
Additionally, Morrows is committed to providing attractive fixed interest rates across eligible lending products, in preparation for expected spikes in variable rates. The expectation of home loans to return to values of 3 – 4.5% means that securing fixed interest rates now can offer significant savings and long-term financial relief. Even a rate change of 0.5% can affect your home loan repayments. For example, a 0.5% rate difference on a $500,000 home loan would equate to $2,500 per year in interest or $208 per month.
How Refinancing Can Benefit You
In the COVID-19 economy, there can be much value to be found in reassessing your loans and financing arrangements. By selecting a refinancing option now, clients access a greater level of financial security and flexibility before interest rates rise. Those who choose to refinance now can expect significant savings compared to variable interest rate products or fixed rate offerings that will begin to appear towards the end of the year. Changing to a more suitable option matched to the needs of your business and current circumstance can alleviate the financial burden.
If you have any questions regarding lending offers or Morrows Lending products, please contact Les Warden and the team at Morrows Lending to find out more.