Are you feeling the effects of the Reserve Bank’s recent interest rate hikes? With nine consecutive months of increases, it can be hard to keep up and make sure you’re making the right decisions with your mortgage. Whether you have a variable rate and your repayments are getting larger and larger each month or worse you have a fixed-rate expiring soon which is going to leap up to our current standard rate automatically, we have a solution for you.
Variable-rate Mortgages
When lenders follow suit and increase their own rates alongside the RBA, many customers end up paying higher-than-necessary rates. With over 45+ lenders to choose from, refinancing with Loan Location gives you the chance to find a lender who offers a more competitive rate and will save you money on your repayments. We have experts on hand to help you get the best home loan product on the market – so don’t hesitate to get in touch today!
Fixed-rate mortgages
For those with fixed-rate loans, it is very important to keep an eye on the current standard variable rate. A current struggle for households at the moment is that since the RBA is raising interest rates through the roof, once your fixed rate expires you will be automatically paying the standard rate of up to 7.19%. If you’re like most who got a fixed rate of around 2%, you are looking at a 50% increase in your weekly repayments. Looking to find the best pathway out of your current fixed-rate? Find out how:
First Home Buyers
The interest rate hike also has implications for first-home buyers as banks may limit how much they are willing to lend based on affordability calculations which factor in rising loan costs. Basically, The RBA increasing interest rates affect your serviceability (your ability to make repayments, according to your income and expenses) meaning you will not be able to borrow as much as you may like. If you’re interested in how we make buying your first home easy even in this harsh market, find out more with the button below.
In conclusion, the Reserve Bank’s interest rate increases can have serious repercussions for mortgage holders. To get the best out of your loan and avoid potential pitfalls, it’s important to get in touch with one of our brokers today! Loan Location is here to help you get your finances in order and access great rates that can save you time and money in the long run.
