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Two things just happened which we wanted to share with you:
- Numerous banks have just reduced interest rates for their fixed rate loans; and
- We have noticed recently that the cost to ‘break’ fixed rate loans is on the rise
This got us thinking… what do clients need to know about fixed rate loans?
We tackle this in today’s podcast.
- How the Banks fund their mortgage lending (including the significance of the Bank Bill Swap Rate ‘BBSW’)
- Why the key indicators around economic growth, unemployment and inflation drive monetary policy (e.g. the Reserve Bank of Australia ‘RBA’ cash rate)
- Recent declines in the BBSW, plus recent sentiment shift from the RBA on rates (the RBA has become more dovish, the next move could be down)
- How the above ties back into the new/ discounted fixed rate offers we’re seeing, and the change in fixed rate ‘break’ costs
- How fixed rate break costs are calculated, and how they can impact your lending strategy
- Advantages and disadvantages of fixing your loan
Thanks for tuning in, and enjoy!
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If you have specific questions for myself or Patrick you can email hi@longproperty.com.au and we’ll respond within 24 hrs.
If you like the episode you can subscribe to the Long Property Show here.
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The Long Property Show provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. Nothing in the Long Property Show constitutes legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances
