WITH interest rates having risen 75 bps in less than six weeks, along with an expectation the cash rate could reach more than two per cent by December 2022, borrowers are in for an education.
Interest rates have been decreasing for approximately 11 years and now a considerable proportion of borrowers are seeing mortgage repayments increase for the first time. Property prices are falling slightly in some areas after two years of rapid growth, and many homeowners are looking at whether they will be able to afford their home loan repayments and what their financial position looks like moving forward.
Since the interest rate rises, Loan Market Broker Mike Timothee has been remarkably busy answering both existing and new client calls and having meetings with borrowers to help them navigate the changing interest rate scene, reprice, and refinance their home loans, or, in some cases, lend some comfort and support.
“It has been hectic talking to a lot of my clients about how to manage their new interest costs. Strategies they can use to reduce their debts, and as a result, reduce the overall interest cost, manage the levels of exposure, and attempt to obtain the best result for them. I am spending a lot of time doing this at the minute,” said Mike.
Clients need to understand that there are many options available to them, and Mike can show them what the impact will be from a one per cent rate rise on their mortgage and what that means to them on a weekly, fortnightly, or monthly basis.
Mike prides himself on being open and realistic to clients, new and existing, on their expectations with borrowing and advises them not to listen to the media, who encourage hysteria in the marketplace.
Mike’s services are free, so call and have a chat about your position and he will produce some options, whether that is a refinance to another lender or to lodge a pricing request with your current lender for a better interest rate.
Loan Market is located at 281 Wyndham Street and Mike can be contacted on 5831 7747 or 0438 372 280.