The Reserve Bank of Australia (RBA) has held the interest rate at 4.35%, 6 February 2024.

Now at 2.60%. The Reserve Bank of Australia (RBA) has delivered a further 0.25% rate rise today, with the official cash rate now reaching 2.60%.  For many people, this will make it difficult to meet their repayments, with interest rates reaching 5-7%, and possibly more increases to come.  

Banks are responding to the Reserve Bank Australia (RBA) rate increases, with customers feeling the effects of rising monthly repayments.  While there are many reasons for the rates increasing, the important thing to understand is how it will affect you. With rates rising and any further increases likely to be passed directly on to you (the consumer), this can have a big impact on your monthly outgoing payments.

Working for yourself has many perks and rewards, however, when it comes to applying for a home loan, being your own boss often sends up a red flag to banks and other lenders. Why? A salaried employee has a regular, steady income and is less likely to experience the cash flow volatility of a small business owner, contractor, entrepreneur, tradesperson or freelancer.

Being proactive and accessing specialist advice, self-employed applicants can also enjoy a successful and hassle-free road to securing a home loan.

Individuals and businesses with cash flow difficulties sometimes use the ATO like a bank overdraft. They deliberately don’t pay their taxes on time and whilst they may incur interest in doing so, it allows them to use the monies owing to the ATO for other purposes.

Up until now, the ATO have been very slow at chasing outstanding monies owing to it but this may change. Soon they will be able to disclose tax debt information to credit reporting bureaus which may have serious and inescapable consequences.
 

Does your banker wake up every morning thinking about you and your business?  Do any of your suppliers and partners?  Is your banker a true advocate of your business?