Breaking News – The RBA has just made an announcement to help Australia’s economy combat COVID-19

COVID-19 response: We are here for you

Why the Reserve Bank of Australia (RBA) wants to Keep the Cash Rate
Low - Time to Talk to Your Finance Specialist.

Coronavirus is causing more than a shortage of loo paper at Woolies and Coles.

Over the past month, the virus has dominated our newsfeeds, impacted share markets and business confidence. While most health implications are mild (at the time of publication, many cases appear to have already recovered) the broader economic implications are starting to hit home.

For this reason, the Reserve Bank of Australia is doing something it doesn't normally do. They held a meeting yesterday to discuss a support package to support the Australian economy.

How it affects you as a mortgage holder is around the cash rate changes.

The cash rate is used as a benchmark for interest rates for mortgages and deposits.
So as the cash rate drops, we hope to see lenders follow suit and drop interest rates accordingly. That doesn't always happen.
Mind you, when the cash rate increases it is pretty certain that lenders DO follow and increase their interest rates.

Broadly speaking when a country cuts its interest rates, the objective is to encourage economic activity, protect jobs and investment.

At an emergency meeting yesterday, the Reserve Bank Board agreed to have a cash rate target of 0.25 per cent.

They have also made a commitment to NOT increase the cash rate until progress is being made towards full employment and they are confident that inflation will be sustainable within the 2-3 percent target band.

So good news for those who have mortgages and for those considering new finance arrangements.

Support at hand

There are many ways, as your finance specialist, where we can help.

1. Review your mortgages to achieve a lower interest rate

Firstly, interest rates are obviously at an all time low and likely to be here for a while. So if you are worried about your mortgage payments then NOW is the time to review and see if there are more affordable options for you through the many and various lenders we have access to.

2. Fixed rate review

If you are coming off a fixed interest loan or have less than 12 months before your fixed rate expires, this would also be an opportunity to review your loans as the cost of changing might now be worthwhile.

3. Mortgage stress

If you have lost your job, may lose your job or your employment is reduced, some lenders allow flexibility. Please call us first to allow us to support you through any financial hardship. We will work through the options available to you. Please do not panic and make rash decisions before speaking with us.

4. Investors

Have lots of loans? Worried about rent reductions?
Let’s chat about a safety strategy for you as well.
Some might want to take advantage of a low property market and low interest rates.

5. Made an offer on a new property? Settling soon on an off the plan purchase?

If you have a pre-approval that is older than 3 months then you need to call us urgently for a review. What may have been affordable for you 3 months ago, may have now changed.

If you have a property in the development stage and settling later in the year, contact us for our savings and budgeting tips to ensure your loan will go ahead.

You see there are many ways we can help. Don’t feel like you are alone with these decisions.

We are certainly here to help you.

OPTIONS for discussion?

As you are probably aware, a lot of what we do as your finance specialist we do over the phone. There are communication options for us to stay in touch and meet online, so please be assured we will find one that suits you. If the world was not online before, it surely will be now.

If you are in a situation where you do feel the need to review your finances, we will work with you using the best medium.

There are many video conferencing tools available:

 - Skype

 - FaceTime (iPhone users only)

 - Zoom (which is very popular)

We can conduct our person-to-person meetings using one of these mediums to fulfill the requirements of most lenders to enable us to process your loan application.

New to online technology?

No worries!

They are super easy and very convenient means of communicating.

It is a secure, encrypted environment with no need for any software program.

We simply send you a calendar invitation that automatically downloads a small software file onto your phone, tablet or PC to enable you to come into a face to face meeting with us.

We can even step you through it over the phone if you’re worried.… it’s really easy!

If you would like to meet using one of these alternative methods, we can happily arrange it at your convenience.

You are important to us, and we are here to help you during these uncertain times.

If you require assistance or need a reassuring chat about what today’s rate cut means, or if you have any other financial concerns, please touch base with us so we can work through your options together.

We hope you and your family are safe and well.

Take care and stay in touch – we’re here to help.

After all, your Finance Matters...

If you'd like help with assessing your personal and financial situation, as well as comparing the loans in the market to see if you're truly getting the right deal for you, then call Bob Malpass now on 0431 862 136, email [email protected]

Thanks for reading

Bob

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