Australia is facing its first recessions in thirty years, and it has alarmed the individuals residing in the country. Australian central bank governor just announced three decisions that were just extraordinary.
The first decision is to cut the official cash interest to be zero percent. A second and a significant decision is to sign a blank check for the reserve banks for purchasing whatever number of government bonds which are deemed necessary for keeping the borrowing costs down.
There is a third decision that states that a commercial program is being launched, which includes lending to the banks at cheap rates, which will, in turn, lend money to the SME’s at competitive interest rates. All of these measures will be taken to avoid the recession.
Australian households are in immense pain
There is a feeling of sadness going around in the families of average workers as most of the people will be affected due to recession.
The job market is already suffering. People who have a job are also insecure because of the recession. Small businesses are on the verge of collapsing after holding up against the situation.
Secure jobholders need to stay focused too
Some people have stable jobs, and their salaries are credited in their accounts consistently every month.
Though things won’t get messy for them, they still need to sharpen their tools too because, in the coming weeks, it might get messy, so everyone needs to stay focused and prepare for the worst.
Check your interest rate
While talking about the saving tips, one should really check their mortgage rates in the coming week as you’ll get the most significant saving of all. Banks are still falling short.
According to a report on average, Australian paid 3.63 percent of interest on every house loan, excluding the investment loans. While the rate paid by a new mortgage occupier is 3.21 percent. That really sums it up that how much banks care for their existing customers.
How to grab the best deal?
The only possible way to minimize your mortgage is to compare the rates on any comparison websites that provide the best deals for lending money.
As things are moving relatively at a higher pace than expected, but there is a chance that you might get a deal with some small bank that offers low-interest rates because of the recession.
If you aren’t comfortable with getting a loan from any other bank, you should call your own bank to provide you with a better deal and ask for a reduction in the interest rates as it will save you tons of money on the life of your loan.