Interest rate rise brings opportunity
Of course, everyone is aware by now that the Reserve Bank announced it was raising official interest rates this week. There were no surprises when the RBA took this step and, given that several economic commentators had been predicting that the increase would be higher, the decision to raise rates by just 0.25 per cent probably came as good news for a number of local home-owners.
In fact, while no-one is keen on seeing their home loan repayments go up, this announcement might end up providing a silver lining for a lot of homeowners. There’s an old saying that no news is bad news for everyone, and this could well be the case for a substantial number of property owners and intending buyers in the City of Hume.
Firstly, there were no surprises in the news that all four of the Big Banks have already announced they will be lifting their home loan rates in response to the Reserve Bank’s decision. But hopefully these announcements will focus people’s attention on what they are paying on their mortgage, (or they are going to be paying once they purchase), as the average borrower with a $500,000 mortgage can expect to see an increase of around $65 per month if the banks pass on the full increase.
With interest rates at record lows over the past few years, a lot of property owners have tended not to think about the interest rates they are paying on their home loans. As a result, many have been paying uncompetitive rates simply through negligence. So now is an ideal time to contact an independent mortgage broker to discuss what deals are available, (either through your existing lender with a bit of persuasion, or through one of their competitors).
This is particularly relevant right now as many of the lenders will be aware that whilst they are able to lift their home loan rates, they won’t want to lose market share to other lenders in the process. This makes them more open to discussions about deals for established borrowers with a history of paying their loans on time.
With this in mind, why not pull out your ‘To Do List’ and add a ‘Call to the mortgage broker’ to it. We can almost guarantee that if you haven’t looked into what deals are available in the home loan market for a number of years, you’re probably in for a pleasant surprise.
Of course, if you haven’t dealt with a mortgage broker before, don’t hesitate to give us a call for a recommendation. It’s a conversation that won’t cost you a cent, but that could save you thousands of dollars! Just give us a call at Barry Plant Gladstone Park this week on 9330 1088.
Best wishes,
Nick Pugliese - Sales Director
and Bill Karp - Director
Barry Plant Real Estate
Gladstone Park