Hi Onixpected,
The RBA cash rate cut to 1.5% is a new historic low and no one can accurately predict if it will go any lower or rise in the coming days.
It's almost certain that you're paying too much if you haven't refinanced your mortgage or negotiated your interest rate in the last two years. So this can be a truly opportune time to refinance but note that it may take a while before the variable rates drop.
However, since the money market reacted preemptively to the news of a possible RBA cash rate cut, a number of banks have already dropped their 3 year fixed rates so you can consider fixing too.
To get the most benefit from refinancing, and avoid LMI, you should refinance only if you have less than 80% owing on your mortgage, you've made timely mortgage repayments for the past 6 months and you have stable employment.
You can check out our website to learn more about whether or not it's a good time to refinance also considering your personal situation. Alternatively, you can discuss it with one of our expert mortgage brokers directly by calling 1300 889 743 or by completing our free online assessment form.
Cheers,
Otto
Official RBA cash rate has dropped again so refinance?
- Otto Dargan
- Mortgage Specialist
- Posts: 7730
- Joined: Sat Sep 06, 2008 5:55 pm
- Location: Sydney, Australia
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