Mortgage Interest Rate Rises and Refinancing Tips

Jun 19, 2023 10:37:00 AM

Aussie homeowners facing yet another cash rate hike in June 2023 are understandably concerned about the impact that rising interest rates will have on their mortgage repayments. Going from a low .1 per cent little more than a year ago to a new high of 4.1 per cent, the latest cash rate hike has seen a number of banks push up mortgage rates. But, not all lenders and there are still interest rate deals to be found. If you are considering refinancing, non-bank lenders may be a suitable option.

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Topics: Interest Rates, Mortgage Broker, Refinancing

5 Things to do Before Your Fixed Interest Rate Rolls Over

Mar 13, 2023 1:56:46 PM

Australians already struggling with a rising cost of living are bracing for more pain, as many homeowners will see ultra-low fixed rate mortgages expire in 2023. Thousands of home loans taken out in mid-2020 are due to roll over before the end of the year at much higher interest rates, with some homeowners facing repayments that could soar by up to 65 per cent. Get budget-ready for a fixed interest rate roll over and avoid paying “loyalty tax” with these 5 tips.

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Topics: Interest Rates, Financial Health, Budgeting

How to Navigate Your Fixed Rate Rollover

Jan 13, 2023 9:35:51 AM

Around two thirds of all fixed rate mortgages taken out during the pandemic will mature before the end of 2023*, with the remaining one third maturing in 2024. Most of these fixed rate borrowers will be making the tough transition to floating rate loans that are 3 to 4 per cent higher – essentially nearly double - than what they’re currently on. It’s inevitable that some households in Australia will face significant financial stress. Here are some tips on how to navigate a fixed rate rollover.

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Topics: Interest Rates, Budget, Financial Advice

Rising Interest Rates Impact Borrowing Capacity

Oct 20, 2022 8:26:09 PM

For the sixth consecutive month, the Reserve Bank of Australia (RBA) has raised the official cash rate, with most lenders increasing interest rates soon after. For some potential home buyers, the increase in interest rates has come as a shock, forcing them to re-evaluate existing pre-approvals and borrowing capacity. Here’s more on how rising interest rates impact borrowing capacity and pre-approvals, and what to do about it.

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Topics: Pre-approvals, Interest Rates, Borrowing Capacity

Cash Back Incentives and Cost of Living Concerns

Aug 22, 2022 1:37:28 PM

Recent interest rate hikes have many homeowners in Australia considering switching to a lower-rate home loan lender. And with more cash rate hikes by the Reserve Bank of Australia predicted, it’s likely the rate of refinancing will continue to grow. But it’s not just a lower interest rate that’s drawing new and existing customers to lenders. As refinancing competition heats up, lenders are getting creative about the incentives they’re offering to mortgagors, with many now targeting offers that help combat cost of living expenses.

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Topics: Interest Rates, Mortgage Broker, Home Loan

How to Navigate Interest Rate Rises

Jul 20, 2022 4:51:38 PM

As Australian household budgets are stretched further by yet another interest rate rise, some homeowners are looking at ways to cut discretionary spending, while others are considering refinancing their home loan and shifting to lenders offering better deals. With further rate rises likely, now may be the right time to revisit spending and saving, and make some small changes to reduce monthly commitments. Here’s how to navigate rising interest rates.

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Topics: Interest Rates, Home Loans, Buying and selling

Interest Rates Are on The Way up

May 12, 2022 7:41:42 PM

For the first time in more than a decade, the Reserve Bank of Australia is raising interest rates. And with the cost of living at its highest level in 22 years, borrowers have been warned that further rate hikes are likely. The Reserve Bank will be tightening policy at a much faster pace than previously indicated in an effort to regain control of inflation. For those borrowers who are heavily indebted with a limited savings buffer, now is the time to plan ahead.

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Topics: Interest Rates, Mortgage Broker, Home Loans