One of the most discussed topics for tomorrow is possibly the RBA’s decision to hold the cash rate or another increase!
While the increasing interest rate and inflation are putting immense pressure on household finance, they offer an environment where lenders are heavily competitive to retain and win customers.
A little bit of work could save you a significant amount of $$$.
If you’re unsure what’s available in the market, feel free to reach out to me for a brief health check of your mortgage.
#mortgagecliff #swiftlend #swiftlend #refinancemortgage
#interestrate
FAQ
What is a mortgage cliff?
When a fixed-term loan expires, many borrowers will be faced with significantly higher repayments if the loan reverts to the lender’s standard variable rates
Why it could be of concern for you?
If your home loan has been fixed and is coming to expiry, it is highly likely your interest rate is around 2% and if that reverts to the lender’s standard variable rate, it could be close to 5.5% or even higher. This means that your payment would increase significantly
What should I do?
You should speak to your lender to negotiate a better rate, or explore the market for a better rate
Market for Refinance?
It’s probably one of the most competitive markets for refinancing your home loans. Lenders are offering incentives such as cashback, lower interest rates, and no package fees. And many lenders are introducing attractive fixed-rate home loans.
When to act?
The rule of thumb – you should start your research or negotiation with the bank preferably at least 90 days prior to expiry. This allows for enough time to:
* undertake a thorough research to ensure that you’re getting a product that suits and meets your needs
* arrange all supporting documents correctly
* submit the documents to the lender and ensure smooth transition of the loan after fixed-term expiry
Where to start?
You can do the research if you have time and knowledge to make an informed decision. Alternatively, you can reach out to a Broker who has access to multiple lenders’ (up to 60+ lenders) products which can meet your need. Brokers can negotiate better deals with the lenders which is sometimes difficult to achieve through the lenders directly
