It’s been an interesting few weeks in the wonderful world of home ownership. If you missed it, the Reserve Bank trimmed another 0.25% off the cash rate, in what was a welcome announcement to many. The government went into bat for us and urged the big four to pass on this cut, in full, to their home loan customers. Unfortunately the banks have been slow to pass on the savings for all loan types.

This recent rate cut was of particular interest, given it was already sitting at it's lowest point for the past 30 years. For those of you who were paying attention, the cheapest market rates are under 2.90% fixed and under 3.18% variable. Since the announcement, I have been swamped with calls from my clients asking why their rate isn't that low, and what is wrong with their bank / and or loan?

The answer however, might not be simply black or white.

I like to think of interest rates like clothes. It should suit you when you first get it, but after about three years, it generally needs to be replaced, or altered to suit your everchanging personal circumstances. There is no point comparing your clothes with anyone else unless you are the exact same size, shape and have the same budget to spend.

The new rates may seem cheap, but the real question is - does it suit your current situation?

So, if you’d like a rate review let’s have a chat, but if you are looking for a fashion upgrade, i'm sorry, you are on your own!

Have a great month.
Michael