More rate cuts predicted for 2013

AMP’s Dr Shane Oliver has written predicting two further rate cuts in 2013, great news for borrowers! But how can you capitalise on this advantage?

1. Keep your repayments at the “pre rate cut” level to put you ahead on your home loan and build up a surplus for an emergency or even a family holiday! Your home loan is often the best place to save your money as you “save” interest at a much higher rate that you “earn” interest – even in a high interest bearing account.
2. Change lender if your lender is not passing on the majority of each rate cut – low interest rates often mean it’s easier to change lenders
3. Check your loan is up to date – older packages often mean you are not receiving the very best discouts on offer.
4. Consider fixing your loan while rates are low. There are pro’s and con’s of fixing, talk to a professional to know what will work for you, but with fixed rates at seriously low levels it’s worth the conversation.
5. Change to weekly or fortnightly repayments or use your offset account better – if you want some tips – ask us how!
6. Consolidate high interest debts into your home loan and make a plan to knock them down fast!
7. Review all of your other bills & loans at the same time – if we’re saving money and making changes we may as well make a HUGE difference.

We have recently completed refinances where each couple was able to save more than $150 a week in their repayments – this is more than small change so make sure you review your loans often and as soon as you are able. We’re here to help.