3 Witty Ways to Capitalise on Low Interest Rates

 It is analysed that over the next year, there hardly will be any change in the cash rate. Reportedly, it is kept at 2 percent for another consecutive month and as far as the CommSec's analysis is concerned, the cash rate is not likely to move from its current state any time soon.

Do you know what does it exactly mean? This simply means that the interest rate you might be enjoying for your home will be stable for a while, and now you will be able to capitalise on it. Make sure you make the most of the record of this low interest.

Here you go -

Save Yourself a Wiggle Room-

You can save yourself a wiggle room in case you just fix your rate. This way you get a nice holdfast in your savings. Moreover, you can possibly split your home loan too. Keep one part of it on a fixed rate and the other one on variable. You never know what the future has to bring to you. Supposedly, any future rate movements, if beneficial, will be applied to the portion left with variable rate.

Insulate Yourself from Future Rate Rises-

The low interest rate will always mean savings. However, it is not all. The thing that should concern you is the way you will insulate yourself from the future rate rises. Splitting up your home loan in two portions is one option. On the other hand, you can also pretend that you are still repaying the loan at a rate of 2 per cent higher. Just use the money saved to take more off your payments of mortgage. It's all about bumping your repayments and insulating yourself from the future rate rises.

If there is a Redraw Facility, Increase the Frequency of the Repayments-

Another way you can save the most of the current cash rate is to increase the frequency of the repayments. This means you're not bumping up the amount. This will be useful to you only once you're assured that there is a redraw facility attached to the mortgage repayments you are going to make. The benefit this facility provides you with is that you can redraw your money out of the repayments you've already made if you need it at the time of emergency.

It's high time you use the stability of the cash rate currently available. Capitalise the most of it!