Cash Back by Christmas?

Image by: santaonthebeachsydney.com.au

Last week a few of the majors lowered their floor rates in response to the Reserve Bank reducing interest rates.

What this means is that the average buyer could expect to have an extra $70,000 to spend on a home – which again may push property prices up as banks have reduced their serviceability rates.

According to RP Data, auction clearance rates over the weekend (alone) were above 80%. The Australia Consumer Confidence is the highest it has been since November 2013, which also supports the continued growth we are seeing in the property market 

Responsible lending laws are set to be wound back in a bid to allow banks to lend money to customer more easily , Federal Treasurer Josh Frydenberg announced last week, these changes have not been 100% confirmed as yet however the thought is that the emphasis on borrowers expenses will be change back to the responsibility of the borrower

As well as lowering their floor rates, many of the big 4 banks have lowered their fixed interest rates to below 2% which is unprecedented. 

Furthermore, some banks are offering up to $4000 to refinance making this the perfect time to have a chat to us to see how a reduction in your home loan rates will affect your current weekly budget.  

Even if you do have a fixed rate that has not yet expired, it is worth having a conversation with us to see if there is some benefit in you switching.

Image cred: Getty Images

This is exactly what Lee and Chris did - They recently approached Sandcastle Finance to run some numbers even though their fixed rate loan was only due to expire in June 2021. Lee and Chris also had a $20,000 credit card debt which they had only been paying the minimum amount on. 

We were able to show them how, by consolidating this credit card debt into their home loan and refinancing at these historically low rates their cash flow each week could be improved by $300 – this equates to an additional $15,600 per annum they could put back into their home loan!

If you know anyone who might be interested in having a similar story for themselves, we would love to help put some cash back in your pocket before Christmas!