The Reserve Bank has held a steady rate recently and the property market it going well. Businesses and consumers have gained more confidence, and employment is steady. These conditions all indicate that now is the perfect time to fix up your loans and focus on paying them off.
Get your home loan now, before the rates increase again. Australian banks borrow on international markets, and these markets rates are rising, therefore Australia is sure to carry forward these rates at some point. Even more reason to act now on your loans.
How to cut your loans
Loans are not so simple that you can obtain one and forget about it. There can be as much as a two percent gap between the highest and lowest interest rates. This means it is always best to shop around for the best deal and when you have – ask for an even better deal.
The best way to get a better deal is to create a great relationship with your bank manager. Here are some tips on how to do so:
- Make sure you are presented professionally so that you look reliable to loan to
- Be open about your financial situation – if you have a secure job and can pay the loan you should have no problems
- Present the bank manager with a plan of how you will pay off the loan and show them your budgeting skills and how you will meet repayments
- Tell them any bad news before they find out elsewhere and don’t give you bank manager any unexpected surprises. Make it easy for them to say yes to your loan application
- Make sure you are consistent, reliable, and honest in your plans and ideas. The banks system will give them a clear idea of your finances so there is no point hiding anything
- Show them that you are willing to go the extra mile for get the loan
Simple relationship management and grooming you bank manager to say yes is a great way to improve your loan situation. The above points will help you and your bank manager run a much smoother process. And in the approach towards the bottom of the interest rate cycle, this is the right way to ensure that you will be better off.
Source: Yahoo Finance