At its final board meeting for 2012, the Reserve Bank has decided to cut the official cash rate from 3.25% to 3%.
For home owners a rate cut may seem like an early Christmas present, but as we all know there is no certainty that lenders will pass this on in full. So this is an ideal time to check what action your lender takes and how this impacts you.
With Christmas spending top of mind this month, there are many ways to ensure you stay out of the red this festive season, and even make savings on your home loan and other financial commitments. The trick is to spend a little and to keep the costs within your means.
Top tips to avoid the stress of over-spending this festive season:
- Create a holiday season budget: This will allow you to clearly see how much money you realistically have to spend on gifts and celebrating this Christmas.
- Spend within your means: Avoid starting the New Year with additional debts by steering clear of credit card or store card spending and interest-free loans.
- Plan for the New Year: If each year the festive season takes its toll on you financially, consider putting plans in place now so you don’t find yourself in the same situation. Putting aside a small amount of money each week will help when you need an extra injection of spending money these holidays.
When it comes to your home loan, the New Year might be the perfect time to review your current home loan to see if you can cut costs further by negotiating a better interest rate, or finding a better offer elsewhere.
We always here to help, so if you’d like to discuss your home loan needs please feel free to contact us at any time on 9432 6070.