How you can benefit from reduced home loan rates.

As a result of everything that has happened this year, we are seeing the lowest interest rates on offer from the major banks in a long time. With rates dropping below 2.5%, now is the best time to get one step ahead on one of your biggest debts.

Whether you’re looking at purchasing a new property, or already have a home loan to pay off, these low rates are going to be in your favour.

If you already have a home loan, the temptation to drop your repayments is there, now that your loan is accruing less interest however, we have some top tips on how to use this drop in interest rates to your advantage and come out the other side a winner:


Don’t decrease your repayments.

If you can afford to, leave your repayments at their current rate (or even increase them!) so that you are effectively overpaying on your loan. By simply putting away an extra $50 on top of your minimum repayments you could save yourself over $14,000 in interest over the life of your loan (based on a $300,000 loan with 5% interest over 25 years) – more money in your pocket!


Choose a fixed loan.

Fixing all or part of your home loan is the best way to take advantage of the low rates and protect yourself against sudden rate increases over the next few years. This gives you some peace of mind that you won’t be surprised by any sudden or dramatic rate increases and you’ll know exactly how much you need to put away each month to make the repayments.


Open an offset account.

Some loans come with the ability to offset your savings account against your home loan. This in turn reduces the interest you pay on your home loan, by offsetting the interest your savings accrues. This is another way to add a buffer to the amount of interest you pay on your home loan.

At The Hrkac Group, our Finance team can help you find the right loan, set up an interest rate to suit your needs. Give us a call today on 5224 2366 with your questions.

The Reserve Bank of Australia has announced the result of its monthly board meeting.

The official cash rate has been reduced to a new record-low of 2.25 per cent after being left on hold at 2.5 per cent since August 2013.

The Reserve Bank’s decision has come as a surprise: a survey of 30 economists and commentators found that 28 expected the cash rate to remain unchanged.

However, a rate cut is hardly a shock given the weight of speculation that has occurred since the last board meeting on December 2.


If you have any questions regarding these announcements, feel free to contact our Finance Team.

Geelong Finance brokers and Conveyancing teams at The Hrkac Group were pleased with Interest Rate Reduction announcement.

The Geelong Finance and Conveyancing team is pleased that just moments after the Reserve Bank Australia (RBA) announced it would cut the official cash rate by 25 basis points, two of the majors have announced they will pass on the full rate cut to borrowers.

In an announcement on its Twitter feed, National Australia Bank said it would cut its standard variable rate by 25 basis points. CBA has also just announced that they are passing on the full 0.25% reduction. The rate cut takes NAB’s SVR to 6.13 percent and CBA’s to 6.15 percent. More are expected to follow.

This is the first time in a long time that any of the majors have chosen to pass on the RBA’s rate cut in full.

Contact Us now at The Hrkac Group Finance Broker team to review your business and personal loans and ensure you are benefiting from the low official cash rate.