Are You Getting a Raw Deal on your Interest Rates?
It’s certainly no secret that the Reserve Bank of Australia is lifting interest rates.
In the past three consecutive months, interest rates have jumped and so have many people’s mortgage repayments.
Most don’t understand that when the Reserve Bank lifts interest rates, the banks don’t necessarily have to pass it on AND some banks may increase it even more than the RBA did themselves.
Here’s Why you Should be Reviewing your Rates.
It may be a surprise to know that a lot of people have a ‘set and forget’ mentality regarding their mortgages on their homes or investment properties.
This can be a very costly mindset to have, ultimately costing you thousands of dollars each year.
Imagine never reviewing your rental income for your investment property and not once increasing it when the market allows.
It’s the same principle for your interest rate.
Financing your home or investment property is one of the most significant commitments you will make in your lifetime.
As such, it is essential to regularly review your home loan to ensure it is adaptive to your changing circumstances and the ever-changing economic climate.
Benefits of Reviewing your Financial Position Today
Þ Get yourself a better deal and cut down your repayments.
Our extended team of Mortgage brokers have access to an extensive range of lenders, meaning we can negotiate better rates for our clients.
Contrary to belief, there are still excellent interest rates available. Last week we saw one of the major banks spare customers the 0.5% interest rate hike announced by the Reserve Bank and decrease their interest rates on one of their home loan products.
Negotiating a cheaper rate could save thousands of dollars to assist you in paying off your loans earlier or just give yourself a little extra pocket money.
Þ Manage and consolidate your debts.
If it’s been a while since you’ve reviewed loan rates and structures, you might have a new credit card or car loan that you didn’t initially have when taking out your home or investment loan.
Traditionally, car loans, credit cards and personal loans have much higher interest rates than property loans, meaning that consolidating your existing debts into your home loan could save you a significant amount weekly.
Recently we saved a client $890 per month simply by refinancing their home loan to another bank and rolling over their two car loans.
Þ Tap into your equity
If you’ve owned a property in Australia over the past three years, your property is worth significantly more than you purchased it for.
By reviewing your financial situation, we can assist you with completing a mortgage valuation.
A mortgage valuation will advise you of what your property is worth today; if your mortgage valuation is higher than the price you paid for the property, you have what is called equity. You can use this equity to grow your wealth further or for any other items, you may require.
What do I do Now?
While you have the option to compare what products are available in the market on your own, this is a very time-consuming and often confusing process.
At Wealthology, we have built a team of mortgage brokers with decades of experience to assist you in making the right decision. By leveraging their knowledge and expertise, our team of mortgage brokers can provide you with access to over 40 lenders with flexible options and competitive rates.
This is a complimentary service we provide. Contact us today to get started – email leonie@wealthology.com.au or speak to her directly on 0423 465 038.
