The Reserve Bank of Australia (RBA) is likely to raise official interest rates by 0.25% on Tuesday 5th. The cash rate now sits at 3.75%. The 0.25% increase will add an extra $15 in monthly repayments for every $100,000 borrowed, or $45 on the average mortgage. Interest rates on personal loans, credit cards and car loans will increase. Economists predict that the cash rate will be go up at least 1% by mid 2010, and 1.5% by Christmas 2010. This would add an extra $92.30 in monthly repayments for every $100 000 borrowed, or $277.00 on the average mortgage and
If you are struggling with your payment now assess your situation. Consider the impact of interest rate rises on family finances. Could you spare an extra $277 a month?
Now is the time to consider strategies to increase cash flow. Debt consolidation, mortgage refinancing and debt agreements are all valid options. The longer you wait the more your options reduce. Fall behind in payments and debt consolidation and mortgage refinancing go out the window.
Many people might be tempted to opt for a fixed rate in order to protect themselves from future rises. Most banks have already factored in future interest rate rises to their fixed rates. The current low rates present a good opportunity. By paying extra while rates are still cheap, you could reduce the size of their loan much faster than normal. This could result in savings of thousands of dollars.
The RBA cut rates by 4.25% in the wake of the global financial crisis. Australia’s economy is now in recovery the only way for rates to go is up.
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Interest Rates Up Up and AWAY!
The Reserve Bank of Australia (RBA) is likely to raise official interest rates by 0.25% on Tuesday 5th. The cash rate now sits at 3.75%. The 0.25% increase will add an extra $15 in monthly repayments for every $100,000 borrowed, or $45 on the average mortgage. Interest rates on personal loans, credit cards and car loans will increase. Economists predict that the cash rate will be go up at least 1% by mid 2010, and 1.5% by Christmas 2010. This would add an extra $92.30 in monthly repayments for every $100 000 borrowed, or $277.00 on the average mortgage and
If you are struggling with your payment now assess your situation. Consider the impact of interest rate rises on family finances. Could you spare an extra $277 a month?
Now is the time to consider strategies to increase cash flow. Debt consolidation, mortgage refinancing and debt agreements are all valid options. The longer you wait the more your options reduce. Fall behind in payments and debt consolidation and mortgage refinancing go out the window.
Many people might be tempted to opt for a fixed rate in order to protect themselves from future rises. Most banks have already factored in future interest rate rises to their fixed rates. The current low rates present a good opportunity. By paying extra while rates are still cheap, you could reduce the size of their loan much faster than normal. This could result in savings of thousands of dollars.
The RBA cut rates by 4.25% in the wake of the global financial crisis. Australia’s economy is now in recovery the only way for rates to go is up.