What you can do to avoid stress and anxiety with a fixed rate home loan expiring!
With the recent increase in the cash rate by the Reserve Bank of Australia, many homeowners are concerned about how they will manage heftier repayments under the new higher variable interest rate, especially with the current high cost of living pressures.
But what are the available options and how can you make the best financial decision in this changeable market? As a mortgage broker in Perth, I understand that many home loan holders in Western Australia are facing the expiration of their fixed interest rate home loans.
When our clients are approaching the end of a fixed rate OR when they are feeling the pinch of the interest rate increases we look to meet to review and address the following:
- We review our clients current repayments / rate.
- We forecast what happens if rates increase further and what these repayments look like.
- Together we plan to ensure they can or are paying the higher repayment amount now, to ensure they are ahead of any future increases.
- We review new fixed rates to see if perhaps this is a good way to reduce any anxiety and get some clarity on the future.
- Look at their budget streamline costs and see if there is any lazy money.
As a mortgage broker, I can help you explore the pros and cons of each option and find the best fit for your needs.
Here are some key points to consider:
- Seek advice: As a Perth mortgage broker, I recommend seeking advice from a professional (maybe you an speak to us 🙂 well before your fixed interest rate term ends. This will allow you to compare options from various lenders and make an informed decision.
- Communication: Keep an open communication with your mortgage broker and ask them to compare the offers against other lenders. It’s also possible to ask your bank to improve on their offer if you believe it could be more competitive.
- Increased serviceability: If your loan reverts to a variable rate, you will need to be prepared to pay more to service your loan, and the amount of interest you pay will continue to fluctuate with any future interest rate rises. It's important to consider if you can afford the higher repayments.
- Refinance rebates: Many banks and lenders are offering incentives and refinance rebates if you opt to refinance with a new lender. As a local Perth mortgage broker, I can help you understand these incentives, read any fine print, and find the best possible deal for your situation.
So if you're a Perth or Western Australian home loan holder facing the expiration of your fixed interest rate home loan, it's important to act early and seek advice from a professional mortgage broker who can guide you through the process and help you make the best financial decisions for your situation.
Please get in touch today! Regards Glenn Biggins.
This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances. Your full financial situation will need to be reviewed prior to acceptance of any offer or product. This article does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.