Interest Rates Held at 2.75%

[Andrew from Vista Financial]

The RBA has just announced at its July meeting the first decision of the new financial year that interest rates will remain on hold.

 

This leaves the cash rate at 2.75%, see here for the official media release http://www.rba.gov.au/media-releases/2013/mr-13-13.html

[Ktee]

I was hoping they would drop, never mind

[zebedee]

Darn....our home loan completes the end of this month, was hoping for a last minute drop to fix it

[Guest BurgessFamily]

Better still, make over-payments, you'll save $$$$ in the long run.

[Ktee]

Better still, make over-payments, you'll save $$$$ in the long run.

 

Ok if you have the money to do so. I haven't been able to work for the past few years. I do agree though, I know my OH worked it out if we paid an extra $1000 per month we would pay the mortgage off in 7 years rather than 16 years

[ShouldIStayOrShouldIGo]

I feel for self funded retirees trying to live of rates like these, not so bad if your working.

[Keith & Linda]

A line of credit mortgage is a really great way to save $$$ and years, that is, if it is used correctly and you are budget conscious and it works even better if you are paid weekly, we paid our ( albeit small) mortgage off in just over 5 years, yet fully expecting the normal 25yr term. for those whom would like to know It basically works like this, all your money, repeat, all money goes into the mortgage account, and you pay for everything on the credit card, yes even a pint of milk!, you should not even get money out so you have something in your pocket or at least try to avoid doing so. this means that all your money going in each week (or whatever) reduces the interest on the mortgage, that is untill the credit card bill gets paid, but as your income should always be greater than your expenditure then that difference remains in the account further reducing your interest payments, this system compounds but in the opposite way in which we normally associate compond interest. Its frightning at first but becomes a really great method, and we now love it, though we have no mortgage now we still have the facility which we use so we do not accidently overdraw on our normal account and then get those pesky bank charges and fees, cheaper to pay a dollar interest.

 

But as always research and get expert advice on what suits you and your circumstances best.