What will you do with the rate drop?
Monday October 13, 2008
As the RBA dropped the official cash rate a whole percentage point and many a mortgage company has followed with a 0.8% drop, those with mortgages will likely have a bit more money to play with. Despite this, considering the economic climate could lead to job losses and tough times for many families, it could be a good idea to put as much of the money freed up by the interest rate drop into your mortgage as is possible.
When interest rates were higher, some of the savings you will have made on interest by making extra repayments may have been cancelled out. It is important to try to return to a position as strong or stronger than you had when the economic crisis began, so putting as much of the extra money you have into your home loan as possible may help you to achieve this.
Finding the best variable rate mortgage home loans can be difficult if you don't use the right tools. You might find our comparison page useful, as you can compare home loans and mortgages from a great selection of lenders. You may also wish to browse our site if you are interested in reading more about a specific mortgage company.
Share This