As expected, the RBA held the cash rate at 2.50% p.a. yesterday. No surprises there. Having said that, the ASX futures market is still predicting a modest RBA cash rate climb in 2014 (see chart below).

We are however becoming increasingly surprised at the number of clients that are refinancing their mortgage every couple of years.

Mortgages have become highly portable for five compelling reasons:

1. You no longer need to move all of your bank accounts when you move your mortgage.
2. There are no longer any early repayment exit fees on variable mortgages.
3. Many banks are attracting new clients by paying for their refinance costs, and
4. Interest rates are at historic lows (see chart below).
5. Your Smartline mortgage adviser will do all of the work for you. I had to throw that in : )

As always, if you would like us to review your home loan we are always happy to help. It makes sense to as least make sure you are on a good deal.

You can contact a Smartline Mortgage Adviser on 13 14 97 for home loan advice. Or complete our call request form and we’ll call you!

Michael Daniels, B.Com
Smartline Personal Mortgage Advisers
State Manager NSW & ACT

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