Which4U – Finance Blog

The ban on mortgage exit fees introduced in July have been making their first impact this week, following the 0.25% interest rate cut made by the Reserve Bank.

All major lenders have been compelled to respond in the knowledge that home loan holders are now able to walk away from any home loan deal without incurring financial penalties.

November’s interest rate cut from 4.75% to 4.5%, the first cut in 2 ½ years, has provided the first real pretext for banks to respond amid concerns that, under the new legislation, loan holders could easily defect to banks offering better deals.

Were the full 0.25% cut to be passed on to consumers, the average standard variable mortgage rate would be falling from 7.79% to 7.54%, saving roughly $50 per month on an average mortgage.

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1. Keep your tyres fully inflated and cut down air-conditioning usage

There are a significant number of people that drive their cars with under-inflated tyres. Doing so increases the resistance and therefore increases fuel consumption, therefore saving money. Studies show that fuel bills will go up by around to 2% if your tyres are not inflated to the recommended pressure.

To avoid this, ensure your tyres pressure is kept at the correct level by checking them once a week. You can find out the recommended pressure readings for your tyres in your car manual. (more…)