The RBA is going to shift its thoughts on whether you should lock in your interest rate. And now that there are quite a few industry experts calling for Australians to do it, you might be wondering if you should be taking notice and doing just that.
At the end of the day, the head of the RBA is going to do what they think is best, right? Especially when it comes to Aussies who already have a loan that can be refinanced. So when the interest rates are increasing consistently like what’s happening now, you can’t help but to look to the powers that be for the best advice.
That means taking the time to shop around and find the best interest rate, then locking it in over a fixed term.
Why use a rate lock
You might be wondering what a rate lock is. Essentially, what a rate lock means is that when the RBA decides that the interest rate across the country either increases or decreases, that aligns with the interest rate of a loan.
So if you have a car loan at a variable interest rate your repayments may go up or down depending on where the RBA interest rate goes.
When there’s a clear indication that the rate is going to increase, you want to lock your loan in at a reasonable rate. This is what’s known as a rate lock or a ‘fixed’ rate. It’s usually for a limited length of time, with the specifics being dependent on the bank that is offering it.
The benefit of getting onto a rate lock early is that you can save a lot of money when you’re paying off your car loan when the market rate increases after you’ve locked in your fixed rate. It’s important to note that if you’re interested in locking in a fixed interest rate financing package, you need to keep a close eye on what the RBA is reporting and their forecasts for the road ahead.
Speak with us to learn more about rate locks
Before you make a decision that will dictate how your budget is going to end up, speak with someone who can provide you with additional information about the increasing interest rates. Not only that, but someone who will help you lock in a great rate to boot.
And there’s nobody better to do that than Stratton Finance. With well over 20 years of experience in the financing game, you can bet we have the experience and knowledge to make sure you’re getting the best financing deal every time. Our team has worked with thousands of Ausssies just like you to find the lowest interest rates available to them, and we’ll do exactly the same for you.
What that means is that you’ll be paying the minimal amount necessary to drive the car of your dreams. So if you’re interested in doing exactly that, get in touch with us by calling 1300 787 288 or sending us an online message.