Even though many economists were predicting an interest rate cut soon, Tuesday’s Reserve Bank decision to cut the official cash rate by 0.25% was a bit of a surprise to us at Joust. We felt that with Treasurer Scott Morrison handing down his first Federal Budget on Tuesday night that the Reserve Bank might wait for at least another month. When Scott Morrison spoke to the media about the budget he was "assuring it will be focussed on all Australians". http://www.msn.com/en-au/news/other/scott-morrison-addresses-media-ahead-of-budget-announcement/vi-BBsxDuV
The good news for borrowers is that we have a new record low interest rate environment in Australia. It is certainly not great news for retirees or those Australians who are very dependent on interest from their deposits. That group is likely to continue to do it quite tough.
Joust was pleased to see the major Banks move quickly to pass on the full amount of the interest rate cut. ANZ was the exception. We expect to see a lot of “high three’s” in advertised percentage rates in the coming weeks. By that we mean advertised home loan rates that start with a 3 rather than a 4. Now is an excellent time to take a look at what interest rate you are currently paying on your home loan. You can visit www.joustnow.com and see how the Joust panel of home loan lenders will bid against each other and battle it out in a “live,” real time auction to refinance your existing home loan. With Joust you can run your auction in a time frame that suits you and then see exactly how much you could save. It’s free to use and without any obligation.
The remainder of 2016 will be a very interesting period for Australian consumers. With the federal election due to be held in July, it is very difficult to predict the future direction of the economy and interest rates. If you are like many Australians and have an existing mortgage on your home, it’s well worth taking a close look at Joust to discover what options are available to reduce your interest expense.