Today the Reserve Bank of Australia (RBA) increased the cash rate for the third time this year. This announcement follows data that shows a large spike in inflation as households face soaring cost-of-living expenses. The cash rate is currently sitting at 4.35%.
What does this look like for homeowners? This means the cash rate has increased 0.75 percentage points this year, which could be around $335 more per month on mortgage repayments for the average homeowner. If you’re looking to buy, it could mean your borrowing capacity will decrease.
We are all feeling the pinch of the climbing cost of living alongside the higher interest-rate environment. It’s a time when filling up a tank of petrol can feel like a luxury and chocolate inflation looks like a typo.
While many things feel out of our control, there are a few things you can do to find savings. A few that can make a bigger difference include:
- Check on your home loan – if you haven’t checked it yet this year, book in a chat with your broker to see whether your loan is still competitive. Finding a lower interest rate or restructuring to better suit your life could save you money now and in the longer term.
- Tackle debts – if you have multiple debts, including car loans, personal loans or credit cards, it is a good idea to chat to us about whether you could consolidate these into one, lower-interest debt. This simplifies your repayments and could potentially save you money. This isn’t right for everyone, so chat to your broker to see if it is right for you.
- Check your health insurance – premiums for health insurance increased on 1 April. That makes this time of year important to have a look at how much yours increased by and whether another provider may offer better value. Comparison sites like Canstar, Compare the Market and Finder can help.
- Compare your electricity – this is a bill that has been climbing for many households. We can help you compare and switch with our free service or you can compare using the government website energy.gov.au.
- Find cheaper petrol – apps like PetrolSpy, FuelMap and Motormouth can help you see the price differences in petrol near you. The My 7-Eleven app can also help you lock in a fuel price for up to seven days.
- Budget review – review your accounts to see what payments are coming out. If there are any unused subscriptions or non-essentials, now may be the time to cut them.
Now is a good time to review your home loan – whether you’re looking to reduce your repayments or consolidate debt. Reach out to your Loan Market broker for a free chat.
Find a Loan Market broker near you to get started.
