With interest rate rises at the top of the news cycle, and with pretty much all of the big banks having already passed on the cost so far to borrowers, it’s little wonder they, and most finance experts are forecasting a borrower mass-walkout on the big lenders.
Despite attempts from lenders like CBA encouraging borrowers to use their in-house tools to help manage and track repayments or even reach out for financial assistance teams, savvy mortgage holders are understanding more and more about the competitive landscape. This competitive landscape is largely made available through mortgage brokers just like the @Finance team who have a grip on the very competitive rates available.
The proof is (or will be) in the borrower pudding so to speak …
Forecasts from the Executive Director of Connective, Mark Haron suggest that up to 40 per cent of Australians on low fixed rate contracts that are due to expire or variable rates that are rising will look to refinance their mortgage.
There’s little doubt that it’s a smart move, refinancing in this scenario and with rates forecast to rise further over the coming months, the suggestion is to do it sooner rather than later. There’s still plenty of super-competitive interest rates around which may yet become less competitive as the year progresses.
To summarise clearly – speaking with your @Finance mortgage specialists in the short term is the way to go. We can and must guide you toward the options that are in your best interest, and looking at what’s available will cost you nothing so there’s nothing to be lost by considering your options
Are we experiencing a “market correction” that we needed?
Although it might be tough to stomach (or manage) extra repayment costs for many a borrower, the changes, it seems, needed to happen. According to Real Estate Institute of Australia (REIA) president, Hayden Groves, the low-interest rate environment was a key contributor to the inflated house prices seen in recent years, pushing many first home buyers out of the market.
This shift (especially as it calms down), is likely to create a new set of opportunities for people to enter the market and it’s hoped that we can develop a national plan during this period that will ultimately address housing affordability and supply.
Yes, but what now?
As we’ve said, even the big banks are expecting you to look around for more competitive options and we suggest you go forth and do so! You’ve got nothing to lose by exploring more competitive interest rates with @Finance, and everything to gain. Give our Lending Specialists a call today on 1300 469 840 or send us an email to start the conversation – you won’t regret it.