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Reserve Bank of Australia cash rate update - September 2017

On the first Tuesday of every month (except in January), the Reserve Bank of Australia (RBA) sets the cash rate. They decide whether to raise it, lower it or leave it the same, depending on a number of factors, including the performance of the Australian dollar, the state of the housing market and inflation.

The last time the cash rate rose was in November 2010. Since then, the general trend has been for the rate to remain the same, decreasing only every so often. The last decrease was in August 2016.

SEPTEMBER'S CASH RATE STAYS UNCHANGED AT 1.50 PER CENT

Will this affect my home loan repayments?

When the cash rate stays the same, you may not see a change in your repayments. However, the big four Australian banks recently started to raise their interest rates for investors and owner-occupiers with interest-only loans, independent of the cash rate. Other smaller lenders are now beginning to follow suit and raise their own interest rates despite the unchanged cash rate.

Keep an eye on your lender’s rate because even the slightest interest rate rise can make a considerable dent in your monthly budget. If you do find yourself struggling with increased repayments, speak to a Lendi Home Loan Specialist about switching your loan to a lower rate option.

Find out if you could pay less each month with Lendi. Get a comparison in seconds.

What if I am looking to buy a property?

If you are on the lookout for a new home, things may be about to improve for you. Following APRA's move to restrict interest only loans to just 30% of new residential home loans settled, the number of investors entering the market is gradually dropping. That, combined with the unchanged cash rate may result in a decrease in auction attendance numbers and ultimately greater affordability for home buyers.

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Extra costs to look out for this month...

Your interest only home loan: If you have an interest only home loan at a variable rate you may be in for a surprise this spring. Most of the big banks are raising rates by between 0.3% to 0.35%. If your rate is heading north, chat to a Lendi Home Loan Specialist today.

Big banks passing down levy costs: This year’s federal budget announced extra taxes for the country’s biggest banks. Despite the government's repeated warnings, the big banks are insisting that these fees must be passed down to their customers. Keep an eye out for extra savings account fees, credit card fees and particularly home loan repayment hikes independent of cash rate changes.

Is your bank is raising its rates? Switch to a lower rate home loan with Lendi. Compare rates today.

Tags: rba cash rate, reserve bank, interest rate, refinance, new purchase, september, spring

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Important legal stuff

COMPARISON RATE WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years.
Lendi is the trading name of Lendi Pty Ltd, a related body corporate of your licensed credit assistance provider, Auscred Services Pty Ltd (ACN 164 638 171, Australian Credit Licence Number 442372). We will never sell your email address to any third party or send you nasty spam, promise.
EXAMPLE: This example is current as at 20th October 2016. A Click Loans Online Principal and Interest Loan of $150,000 over 25 years has monthly repayments of $767. This is calculated based on the interest rate of 3.69%, comparison rate of 3.69%, upfront fees of $0 and annual fees of $0.
IMPORTANT INFORMATION: Loan terms of between 1 Year and 40 Years are available subject to lender and credit criteria. Maximum comparison rate will not exceed 14.99% (see comparison rate warning above). Any calculations or estimated savings do not constitute an offer of credit or a credit quote and are only an estimate of what you may be able to achieve based on the accuracy of the information provided. It doesn't take into account any product features or any applicable fees. Our lending criteria and the basis upon which we assess what you can afford may change at any time without notice. Savings shown are based on user inputted data and a loan term of 30 years. All applications for credit are subject to lender credit approval criteria.
Lendi is a privately owned and operated Aussie business. Our mission is to provide Aussies with the right experience when choosing a home loan from our panel of major and non-bank lenders including Click Loans which is a wholly owned subsidiary of Auscred Pty Ltd and a related body corporate of Auscred Services, your credit assistance provider. Although Lendi compares over 1600 products from over 30 lenders, we don't cover the whole market or compare all features and there may be other features or options available to you. While Lendi is 40% owned by founders and employees, we have also been supported by some great minority shareholders including Bailador, Macquarie Bank Ltd and a number of Australian sophisticated investors. We have an independent and founder led board.
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