Another Interest Rate Cut
So what is that going to do for you?
Do you have fixed loans? Is it a time to refinance? (that’s if the banks will let you).
If you are fixed on a 7% loan it could be worth your while to refinance. Be aware though that it is in the bank’s best interest to discourage you from doing this because they are charging you higher interest. The bank will more than likely hit you with a huge payout penalty.
Even so, it may be worth enquiring.
If you could get a 3.5% reduction in interest and an extended period of payment, imagine how much your monthly repayments would come down. This could well mean that you are in the position to purchase another property. The bank could look at you more favourably as far as a payout figure goes if they think they are going to be able to loan you more money.
The next assessment you would have to decide on is whether the property market has hit the bottom yet. In saying that, there are some areas that are producing good rental returns, and still positively geared.
Do your sums and see if refinancing and re-investing is for you right now.
Filed Under: Interest Rates • Property Investment Tips
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