Interest Rates Remain Steady... For Now - Prepare for What's Ahead

You could almost hear the collective sigh of relief across the country when the Reserve Bank of Australia (RBA) decided interest rates could remain unchanged at 4.75%, at least for the next month.

While we’re relieved, no-one’s really surprised. Purse strings are tightly held right now across Australia. It’s no different here in Warrnambool. The RBA understands this and, has acted accordingly.

You could almost hear the collective sigh of relief across the country when the Reserve Bank of Australia (RBA) decided interest rates could remain unchanged at 4.75%, at least for the next month.

While we’re relieved, no-one’s really surprised. Purse strings are tightly held right now across Australia. It’s no different here in Warrnambool. The RBA understands this and, has acted accordingly.

But good things will come to an end. And rates will rise once again. It’s a question of when, rather than if. Those in the know predict it will be by at least a quarter of a percentage point before we see out 2011.

So rather than lament what we can’t change, members should take charge of what they can control and get prepared. Take the time now to work out where you can find the extra dollars to put in to your loan each week, each fortnight or each month.

It not only means you’ll be adjusting your money in preparation for the rate rise. It also reduces the amount you’ll pay in the long run by bringing down the interest paid. And it will cut the length of your loan.

Never underestimate the difference putting an extra $25 a week into your loan can make. Actually – you can see it for yourself by clicking on our ‘Extra Repayments’ calculator here.

That said, I fully understand an ‘extra $25’ is money that some families just don’t have;  extra repayments aren’t an option now and are something that will become very stressful in the future.

If you’re facing this situation, our lending team can help to work with you to devise some realistic alternatives. There’s no need to think you have to weather than kind of pressure on your own.

We’re not just about saying ‘yes’ or ‘no’. As a member-owned institution, we understand there’s lots of answers that fall inbetween. Ask us what the best answer for your situation is.

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