A few weeks ago, most people were banking on a rate cut – and in fact we’ve ended up with out-of-cycle rises by all four major banks and at least five smaller lenders. And with the ANZ Bank now rolling out its own decision at a set time each month, we could be in for some lengthy wait times in each of the coming months to see which way rates will go.
The Reserve Bank makes its announcement on the first Tuesday of every month and ANZ isn’t wheeling out its move until the second Friday, which means a wait of at least three days . So where does that leave borrowers? Slightly confused? Yes. Powerless? No.
If ever the banks were going to start breaking the cycle for rate rises, now isn’t necessarily a terrible time from a consumer perspective, thanks to the amount of information at borrowers’ fingertips about what rates are available in the market, and the relative ease for many to switch providers and make up the cost of doing so by negotiating a lower interest rate from their new lender.
The administrative pain of getting your documents together, filling in some forms and swapping some direct debits is very small when we are talking thousands of dollars saved over the life of the loan.
The very sweet part is that having switched now to loans that will attract no exit fee thanks to the Federal Government’s ban last year, it won’t be that hard – or expensive – to move again should there be a cheaper or better-suited offering elsewhere.