Best options as the interest rate rise’s

| October 7, 2009

Businesses and home owners will be doing it hard as the Interest rate rises and  we will have more rate hikes to come as we go further.

If your home loan is currently with one of the major four banks commonwealth bank , westpac bank , NAB bank , ANZ bank and you are paying a standard variable rate of 5.74 percent p.a, you could pocket the savings by switching to Bank west  ( Now  Commonwealth Bank  owned)  with a variable interest rate of 4.87 percent p.a.

australian-property-market-wa- abnk rates rate rise

Rates will vary depending upon the amount of money you want to borrow,however, remember to factor in costs associated with refinancing, such as exit fees from your existing lender and establishment fees from the new bank.

With interest rates tipped to increase more families may find the need to use hardship provisions.

Some economists are forecasting a rate rise by the Reserve Bank of 0.25 percentage points in both November and December , which  the first one has already come true with the latest hike announced yesterday.

A 0.25 percent increase on the average mortgage of approximately $350,000 would add about $50 a month to repayments.

Home owners should be prepared for multiple rises early next year. “Interest rates dropped  , so we expect rates to rise above current levels over the next 12 to 18 months.”

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Category: Australia, bank rates, Banks, cash rate, Interest rate hike, Property Market, rates, RBA

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