The cash rate in Australia is the market interest rate on the overnight loans between different financial institutions. The Reserve Bank of Australia (RBA) monitors and alters this rate. They will either increase or decrease the cash rate by a measure of ‘basis points’ to manage inflation and economy.
Impact On Mortgages
The rate change is important for its effect on mortgages. The RBA’s cash rate has a strong link to the interest rates charged by the financial institutions on loans to its customers. Variable rate loans are particularly affected by this rate change. If the cash rate rises the interest rate charged by the banks will move in same direction and the same will happen in case of a rate cut. When you are taking a loan, it’s important to research different home loans and interest rates on Home Loan Comparison.
Are the banks in Australia obligated to change their interest rate in tandem with the changes the RBA makes? Not necessarily, but it is in their interest to follow the RBA cash rate change. If a bank does not pass on a rate cut to its variable rate loan customers, they are likely to lose the customers as also dent their image.
How Are Home Loan Borrowers Affected By A Rate Change?
If you have a home loan with a variable interest rate, you are tracking the changes in interest rate charged to you as your monthly payment changes. The rate change is not linear meaning it can go up or down. That will either increase or reduce your monthly payments. In case of a rate cut you may feel happy that you will be saving on your monthly payments. But don’t forget that your superannuation and savings account interest rates may see a reduction too; so it works both ways.
Points to Consider
Global financial crisis has increased the cost of borrowing for banks. They absorb the rise in interest rates up to a point where their profitability is not adversely impacted. Similarly, they may not hasten to pass on the rate cut to customers. So they may at times ignore the RBA rate changes.
Rate changes is a complex issue. Instead of relying rely on the rate change impact on your home loan, it will benefit you to be regular in your monthly payments and watchful by shopping around for a better interest rate on Home Loan Comparison. Alternatively, consider switching to a fixed rate loan to stabilise your monthly payments for rest of the life of your home loan.
Gone are the days when a great open house at a well-staged home combined with a good pitch were enough to sell a home. You need to take a tactical approach to selling your home so that you get the very best rate possible for it from someone who is set to buy a house in Halifax. Here are some useful tips on what you need to do to get to that number your heart is set on.
Show off your best side
Every home has its best side. Rhonda Kennedy gets that, which is why she has used high quality photography to great effect.
Today, to compete with the best, it is important that your property is getting optimal exposure on social media and online channels too. Its as much about the marketing of your property and connecting with buyers as it was before, it is just that much of the process has moved online. If that seems like a tough ask, you can relax, because that’s something a quality realtor will take care of for you as part of his service.
Do your homework
Find out what the going rate is for other homes of similar vintage and design in your area. Work in consultation with your Halifax realtor to work out the right price for your piece of real estate.
Make a great impression
First impressions count. Since photographs of your home will be the first step towards getting your Halifax real estate listed, be sure you get it right. Clean up, de-clutter and move out any odds and ends before you get your home shot.
All the work on staging your home perfectly will come to naught if no one can find you. Be sure that you property gets onto MLS listings for Halifax. Your realtor can help by including your property in the regular newsletter or emails on hot new properties they send to their buyer base. Quality realtors take it a notch up by listing all properties on a state-of-the-art platform with an Online Home Finder tool. Buyers simply search and sort property listings as per their preferences, making it increase the likelihood that someone who wants to buy a house in Halifax matching the description of yours, will actually find it. And when a buyer finds a home that meets all their requirements it is far more likely that they will be willing to pay more for it and meet your price.
Leave it to the pros
Clinching the deal for you takes the skill of a good realtor. Once you have helped work out the basics including a price that you are happy with, leave the rest to Rhonda Kennedy. Her decades of experience, close association with the neighbourhoods of Greater Halifax and expertise in real estate make her the perfect person for the job.