September 2018 RBA announcement: what it means for you

Just now, the Reserve Bank of Australia announced the official cash rate has been kept on hold at 1.50%, citing the low level of interest rates is continuing to support the Australian economy. It’s been a busy week with the first of the big banks, Westpac, opting to hike rates, inciting speculation the other big banks will soon follow. Some of the smaller ones already have: Suncorp, Adelaide Bank and Bendigo Bank have all raised variable rates, blaming “challenging” market conditions and increased wholesale funding costs.

What’s next for the RBA?

Economists asked by The Australian Financial Review speculated similar moves by other banks would likely delay the RBA’s decision to hike the official cash rate – with some even saying the RBA would cut the rate at some point in the near future. The banks’ decisions to increase rates out of line with the RBA is based on covering wholesale funding costs. What this means is that the cost of the money (debt) the banks need in order to lend to you as a consumer has gone up – which reduces bank profits. In order to make up the shortfall, they have decided to charge you (the retail customer) more. Simple? Maybe. Unfair? Probably.

What to do about lenders increasing rates

What can you do about it? If you’re with one of the banks that has raised rates, you could look at switching lenders. UNO’s advisers can look at how much you’re paying now and what your repayments will be under the increased rate and see if there’s a better deal for you out there. Calculate nowAlthough, there’s no guarantee the lender you switch to won’t also hike its rates in coming months. Moving onto a fixed rate will enable you to lock in your reduced interest rate for a period of time (usually 1, 3 or 5 years). The only downside to this is, if the RBA does decide to cut the rate at some point in the near future, you’ll miss out on the potential benefits of that.

The property market

It will be interesting to see how raising rates on the eve of the historically busy spring real estate season pans out. Australian home prices continue to slide – according to CoreLogic, home prices nationally dropped 0.3% in August, from July, leading to an annual fall of 2%. So, whether increased rates further stifle the property market is yet to be seen. UNO’s founder Vincent Turner believes unless there’s a massive rise in unemployment, property prices should continue to drift rather than drop significantly. “I don’t see a 20% or 30% correction happening, especially when you look at how far property prices have risen in the past decade,” he said. With that in mind, if you’re looking for a new loan or wanting to refinance an existing one, submit an application to a lender via UNO between 1st August and 30th September and you’ll receive $1,500 when you settle* – as long as your loan settles before 31st December, 2018. Get in touch today, and remember, UNO is here to help. Get started and Book in a quick call with our customer care teamTHINGS YOU SHOULD KNOW *$1,500 offer: Offer only available for new home loan and refinance applications that are lodged with a lender via UNOs (“UNO”) between 1 August – 30 September 2018, and settled by 31 December, 2018 (“promotional period”). Eligible applicants will receive confirmation from UNO that their home loan application has been lodged with a lender. Eligible applicants will receive a one-time AUD$1,500 cash payment from UNO following settlement of their home loan which must occur within the promotional period. Limited to one payment per main applicant. Multiple applications submitted by the same main applicant are not eligible for multiple payments. UNO will be in contact with the main applicant upon settlement of the home loan application to confirm the payment details. Payment time is up to 6 weeks after confirmation of main applicant’s payment details. All loan applications are subject to UNO assessment and lender approval. Only home loan applications with a total loan amount greater than or equal to AUD$250,000 are eligible to receive the payment. This is a limited time offer and may be varied or withdrawn by UNO at any time. The information in this email has been created by UNO (ABN 81 609 882 804 and Australian Credit licensee no. 483595).

The content of this email has been prepared specifically for its intended readers only and no information is intended to provide any form of financial or consumer credit advice or a suggestion to apply for any home loan product. UNO has not yet taken into account your financial situation or requirements and objectives but this assessment process can be conducted by UNO through an ‘Expert Review’. Before taking out a credit product, you should seek your own financial and/or legal advice. Any opinions or information expressed in the email are subject to change without notice.

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June 21, 2024
I only have praise from my Uno experience! I was a broker sceptic, having done all of the hard work myself for my first two property purchases and sale. I'm now a proud broker advocate having used UNO (Karis Churchill) for two refinances and purchase. The value add Karis brought cannot be underrated! Not only has Karis got me the best rate, with a bonus cash back (nearly unheard of in this climate), she has done it with the least back-a-forth and with the least administrative burden on me (the thing that can deters people from refinancing to begin with). Karis is always on top of everything. Karis knows her stuff. She is the most responsive of any professional service provider I've ever used (my banker never text with an update at 7pm on a Sunday) without being overbearing. You know she's got your back and in my experience the value speaks for itself. Thank you to the whole UNO team, thank you especially to Karis.
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Leanda Cawdry
June 8, 2024
Very pleased with the outcome of this process, Michael Parsons and his team at UNO were helpful, communicative, and took all the stress out of the process of finding me a refinance deal that met my needs. Would definitely recommend Michael and UNO, and I already have!
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Glen Matthews
May 29, 2024
Regarding UNO Home Loan services. I had great experience with uno home loans, Michael parsons was my broker for UNO Home Loans we had excellent communication throughout the whole home loan application. If I had any questions on home loan application which were many were answered in great detail. He had the time to assist me in filling out endless application forms at anytime through the day or night which made the application process stress free. So I would strongly recommend Michael parsons from UNO Home Loans to try his services you will not be disappointed. Thanks to Michael parsons I have the lowest home loan interest rate I could ever hope for which I particularly ask for. It’s was a pleasure working with him. And will be using his services in the near future.
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Gillian Anderson
May 28, 2024
Thank you to Michael and UNO for their help in securing our home loan. I like the way they break everything down in simple terms to ensure that you can make the right decision. Michael was polite and very patient to help us get things across the line. We are now sitting in our first home away from rental circus. Can't recommend them enough. Thanks Michael and thanks UNO
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Andy Song
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Amy has been absolutely wonderful as a broker. I would not hesitate one bit in recommending her services.
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Troy H
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Scott Wilkinson did a great job as my broker. He was very patient and always happy to answer my numerous questions throughout the considerable period of time that it took to secure a suitable property. Would certainly recommend Scott and the team at UNO for anyone seeking a broker.
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First time I have used a Broker and I must say Andrew Wyers and his team were amazing to work with and handled my refinance from a Big4 bank. He was able to understand my needs and find a lender that will be able to help me grow my investment portfolio. Andrew and his team kept me updated as part of my refinance journey and made the process super easy and I was able to refi to new lender in under 2 weeks. Would highly recommend Andrew.
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Scott and the team at Uno are absolutely 💯 amazing. I don't think I could have done my loan on my own. They are highly motivated and I do recommend them.
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April 16, 2024
Dealing with Scott Wilkinson was an absolute delight. Scott is tenacious, hard working and readily available. He made a very stressful process for me and my partner smooth sailing. Would highly recommend.
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Amy and her team were efficient and knowledgeable as our broker. They were easily contactable and ensured all our needs were met.
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Andrew is the best broker I have worked with and one of the few people who understands the investment journey from both a personal and professional standpoint. Andrew is an asset to anyone from a first home buyer to a seasoned investor.
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Yu Su
April 9, 2024
Amy was very help and quick respond when I have questions. Really recommended.
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