August 2016 saw the Reserve bank dropping the cash rate which caused a mass amount of activity within the lenders, with most choosing to pass on a portion of the cut to their customers. This caused a bit of a stir as they also made their rate drops greater for owner occupied lending vs investor lending. Not only this, but we, the consumer started getting rather infuriated by the fact that it took them several weeks for them to pass on the cut!
The non-majors were quicker in announcing and passing on a greater cut than the big 4 were willing to do. One smaller lender actually passed on a 0.26% rate cut – which was slightly over the 0.25% cut the Reserve Bank announced.
What does this mean for you?
Refinancers – Speak to me! Let’s make sure you are on the best deal available suitable to your needs. We try to negotiate with your current lender first to see what they will offer you and then compare it to the rest of the market to see where we can save you the most amount of money… if we can keep you with the same bank – even better!
Thinking of upgrading? – What a great time! With property prices low and cheaper home loans available – it is a great time to review your position and evaluate if it is a good time for you to make the move and upgrade your home! If you are thinking of going down this path, it is important to give the smaller lenders a chance – see what they have to offer you. In most cases the smaller lenders will:
- Offer you a competitive banking package and interest rate (often better than the majors)
- Are customer/community based, so you don’t feel like ‘just another number’
- Are customer focused and more flexible to keep/retain your business
- Most importantly – if there are any issues, you will be able to speak to a human quicker, in Australia
- Are environmentally conscious – are looking at ways to help the planet and its people
When buying/selling/upgrading it is imperative you have a great team behind you backing you up. You need to have a great Estate Agent who is on your side and helping you achieve your property goals, a great finance broker to make sure you know exactly what your borrowing position is so you know what you can afford to buy and to make sure you are getting the best possible deal for your situation possible, a knowledgeable settlement agent that will take all the pain away when it comes to the formalities of selling and buying a home and it is a good idea to have a good relationship with your accountant to make sure you are travelling on the right path and know if there are any tax implications with your plans. The team at Naked Edge Real Estate are able to assist with setting you up with your ‘dream team’ and make your dreams a reality!
Make the most of this sunny Spring weather, and looking forward to sharing the latest news, come October!