After six years, the trend of falling home loan interest rates may be coming to an end.
The Reserve Bank of Australia (RBA) has cut interest rates every year since 2011, but a growing number of economists and forecasters believe the next interest rate move will be an increase.
In their 7 February and 7 March 2017 meetings, the RBA Board decided to leave the cash rate unchanged. The longer these rates remain stable, the greater the likelihood that the next change will be an increase.
We urge anyone with a mortgage to check what their current rate is and to review how it stands against other market rates BEFORE the projected upward swing in rates occurs, you may be in need of a mortgage refinance take advantage of current market conditions.
How to save on your mortgage in 2017
If your interest rate isn’t in the 3% range, you’re probably over paying. Here’s some steps you can take to save money on your home loan:
- Check your home loan rate. Our mortgage team are well versed in the rates of hundreds of products from over 50 lenders and can assist you to determine what rates and structure are best suited for your requirements and personal situation.
- Refinance if necessary. Mortgage refinance doesn’t need to involve a new lender, we have saved some of our clients thousands of dollars in interest by restructuring their existing loans with the same lender. We take care of all the paperwork and facilitate the approvals process for you.
- Incorporate your home loan into your financial plan. Your mortgage repayments shouldn’t be approached with a set and forget style attitude. By incorporating your loan into your broader financial strategy, you can pay down your loan smarter and much faster.
- Loyalty is a thing of the past. Gone are the days when people stay with the same lender throughout the entire term of their mortgage. As most lenders offer more competitive rates for new customers, it pays to shop around every couple of years.
- Change is good. If you have a change in your circumstances – a new job, receive a salary increase, start a family or move someone into your home – this can all affect your debt payment strategy. We can assist to ensure you stay on track or pay your debt down sooner.
Unlike online loan comparison providers, we excel at finding the right loan, with all fees, terms and conditions taken into account, for your unique circumstances. We don’t see your loan as an equation, we offer a personalised, highly tailored lending solution that meets your long-term financial objectives and personal requirements.
It’s easy to get started, contact our offices on 08 9383 8300 to arrange for a no-obligation, complimentary mortgage review.