Wednesday, November 14, 2012

Day 15 - Interest Rates

In Australia the first Tuesday of the month seems to have become quite a big deal. Before the GFC, I don;t recall it being like that, but it now it seems there is quite a bit of speculation as to what will happen.  The first Tuesday of the month is when the Reserve Bank meets to decide on interest rates.

When our loan was approved our lovely loan person knew that the fixed rate was going to move from 5.9% to 5.7% the following day, so he waited until the interest rate changed before ordering the loan paperwork. This was a win for us and would save money over the 3 years that the loan is fixed.

This morning I was watching the TV and I noticed that CUA bank had reduced their fixed interest rate to 5.5%. Usually CUA predict that there will be a rate change and they lower their rate before the decision. In November there was no rate cut, so this is a bonus for us.

As our loan hasn't been drawn on yet, I sent an email to my loan guy this morning and for a cost of $200.00 they will send out the loan paperwork again at the lower interest rate.

That reduction of 0.2% will save us nearly $50.00 a month, which is $1,800.00 over the 3 year fixed period.

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