Great news this month!
The Reserve Bank of Australia has finally decided to give our wallets a little breather and cut the official cash rate by 0.25%, bringing it down to 3.85%.
Cue the collective sigh of relief from mortgage holders everywhere!
We look forward to your lender passing on these cuts to your mortgage.
What’s behind this rate cut?
After a few months of holding steady at 4.10%, the RBA has recognised that the economy needs a bit of a nudge. With GDP growth wobbling at 1.3%, inflation now comfortably within the target range at 2.4%, and the job market showing some signs of softening, it’s clear that the ‘restrictive rates’ party is over.
The RBA’s message?
Time to dial back the pain and help the economy catch its breath.
What does this mean for you?
- If you’re on a variable rate, expect your lender to adjust your repayments soon. That means more money staying in your pocket each month (now there’s a reason to smile).
- For investors, lower rates could reduce borrowing costs and potentially support property values, so it’s a good time to review your portfolio and ensure your finance structure is still working for you.
- For first home buyers, this could boost your borrowing power and make entering the market a little less daunting. However, it’s more important than ever to have a clear strategy and the right loan product.
What should you do next?
· Review your current loan: If you haven’t had a loan review in the past 12 months, it’s time to reach out for one now to ensure you have the most competitive rate and product for your needs.
· Consider refinancing: With rates moving, there may be more appropriate loan options available. Reviewing your loan could help reduce your repayments over the life of the loan.
· Stay informed: We’ll continue to keep you updated with any major changes and opportunities in the market.
You may not know that Redwood not only undertake SMSF loans we also do Residential loans – so reach out to us to find out if you’re on the best rate or if your loan needs re-structuring.
What’s next?
Markets are expecting more cuts through the year, the big banks are expecting two more cuts this year in August and November, but who knows, they just may not know the “Trump effecr” and how tariffs will hit our economy particularly with our number 1 client – China, being the target of the tariffs
So, if you would like a second opinion or you are thinking about refinancing, now is a great time to think about your options. Contact Redwood on 1300 790 110 to discuss your loan needs.
Disclaimer – The content has been prepared by Redwood Advisory Pty Ltd without taking account of the objectives, financial situation or needs of a particular individual and does not constitute financial product advice. This article should not be considered personal financial advice as it is intended to provide factual information only.
