At its meeting today, the Reserve Bank Board announced it was leaving the cash rate unchanged at 0.1%. While official interest rates haven’t changed, it’s worth keeping an eye on what rates your lender is charging independently of the RBA.
No doubt like most people, you dream of being debt-free. Depending on the equity you have in your home, it may be achievable for you.
Low Interest Rates – Is it time for Debt Consolidation?
Have you ever re-looked at your home loan with a view to paying off all of your debts?
For example, you may have a number of higher interest rate debts, such as credit cards, so consolidating your debts will allow these to being rolled into your lower home loan interest rate.
It’s easy to see if it’s worth considering debt consolidation – just check what interest rate you’re paying on your credit cards. Next, compare them with your home loan interest rate. Consolidation means those debts will be transferred from the higher credit card interest rate to your lower home loan rate.
You can consolidate any loans – overdrafts, personal loans etc into a single monthly payment. And because it’s spread out over a longer period of time, it’s likely the increase to your monthly mortgage payments will be minimal.
Does this sound like something you’re interested in? Give us a call and we can look at your options. Your home is your biggest asset, and refinancing has many advantages. But it’s a multifaceted matter that you need to consider carefully. But do it right and you could save a lot of money.
