RBA and So You Think – Is there a link?
So you’d think, pardon the pun, that when predictions from all the experts were, that the RBA was going to keep rates on hold, that, well, rates would be kept on hold. Mind you, last month the experts predicted, on the whole, a rate rise and the RBA, like So You Think, failed to deliver.
It seems that the RBA, like all great horses, likes to keep everyone guessing? Or maybe that the they like to keep all those experts on their toes? Either way, for most of us it doesn’t really matter. We are all expecting the banks to raise rates and we are going to have to find the additional cash to pay for our home and investment loans. And its not going to come from the winnings on So You Think!
Having said that, we don’t yet know if the banks will raise rates by the 0.25% RBA lift, or more. That’s right MORE. And if they do we will all be looking for ways to find the extra $550 a year to pay for it. (Approximated on the average home loan of $300k).
And that’s the questions really. Where do we find the extra $50 or so per month. Spend less on groceries? Don’t go out for dinner? Stop smoking? Take the foot off the pedal and guzzle less fuel? The truth is, most of us will find the money. It won’ be enjoyable, nor easy, but we will find the money. But there is one thing to consider…ask. That’s right, tell your bank that you aren’t happy and ask them to give you a rate discount, before you switch banks. There is no guarantee you will get it, but what can you loose? And if you don’t know how to do this, or you aren’t comfortable asking, then enlist a mortgage broker and get them to help you.They’ll give you some idea pretty quickly of whether your rates are high or low. Other than that, start to consider where you can find the extra cash.
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