Interest rates are down yet again, this time to an all-new low of just 0.75 per cent.
This is the third time this year the Reserve Bank has cut the official cash rate and there are predictions that they’re not done slashing it quite yet.
Most economists think there is at least one more rate cut on the cards.
A survey from finder.com.au found that 26 out of a panel of 45 economists believe that the official cash rate will bottom out at 0.50 per cent. Most of these economists are also predicting another cut by February next year.
Nobody has a crystal ball though, and there is a very real possibility that interest rates could drop further than this in a bid to stimulate the economy.
However, there is also the possibility that the Reserve Bank will look at other tactics, apart from lowering rates, to help give the economy a boost.
How can you make the most of low rates?
While nobody can control how high or low interest rates go, they can make sure they make the most of the current economic climate.
Here’s what you need to do:
- Find out your current rate – If you’re a mortgage holder then the first thing you should do is find out your current rate so you can compare this to other rates being offered.
- Chat to your lender – Find out if your lender is passing interest rate cuts onto you. Whether they are or aren’t passing on the full cut, it’s always worth asking if there is anything they can do to improve the rate you’re being offered.
- Shop around – There are plenty of fantastic interest rate deals out there for those willing to look for them. Just keep in mind that the interest rate isn’t the only factor to look at and that there may be other features that make a home loan product more suitable for you.