Time to read : 3 Minutes
September S Best Home Loan Rates And Why Being Agile Counts Right Now
Interest rates may be rising at a rapid pace, but it doesn't seem like homeowners can relax just yet.
All indications from the Reserve Bank of Australia suggest there's further cash rate hikes coming.
But there's no need to panic. There's still plenty to can do to get on top of your home loan.
This table demonstrates the power of having a good Loan to Debt Ratio (LVR).
There's no time like the present to refinance your mortgage.
The interest rate is climbing and there's a lot of uncertainty in the market for home owners and buyers alike. So let's start with some good news.
💰 Right now, lenders are still offering competitive interest rates for new customers. There are also some great deals to be had. As a broker, it's my job to help you find these.
💵 Some lenders are offering cashback when you refinance with them, incentives like unlimited internet for a year and quick turnaround times too.
Should I refinance on a variable or fixed rate?
At the moment based on the current markets and rates, I would start by looking at variable rates.
Right now, fixed rates are still high and can't compete with the lower variable ones.
Many fixed rate loans will be near 5% rate depending on your LVR (loan to value ratio).
💡 The alternative: If you're not comfortable with going all-in on a variable rate and would prefer the security of a fixed rate, there's the option to go part-fixed part-variable so you can get the best of both worlds.
Don't give up: there could be a loan out there.
Just because someone has told you that may not be able to get a home loan, don’t eliminate that option.
There's a lot of lenders in Australia and a lot of brokers, like me and my colleagues, who can do the hard work for you and have years of experience hunting down great rates.
Speak to a broker if you're not sure where to find the best home loan deals and what type of loan might suit you.
Brokers are obliged to act in your best interests. We'd never advise you to refinance if it isn’t worth financially doing so.
Be aware: everybody's a bit different, so don't just rely on a quick Google to find the best rates.
Being informed is the best home loan tactic.
That's refinancers. For buyers still desperate to get on the property ladder, the more informed you are at each step the the process, the better.
Know the fees involved in the process – that includes lender’s mortgage insurance, and stamp duty. It is a huge negotiating tool.
If you are well-informed, you can negotiate and potentially get a better discount off your property.
There's no perfect time to buy. This is because everyone's circumstances are so different. A good broker will help you weigh up the current market conditions, your savings and disposable income to help you make the best choice, for you.
Be aware: the property market is slowing down across almost all of Australia right now. Darwin was the only city to buck the downward trend last month.
The Bottom Line
Yes, I've talked a lot about the benefits of using a broker and – guilty as charged – I am a mortgage broker. But I believe that with rising rates, my profession has never been more vital.
I treat all my clients as if I was in their position, what would I want as a client and how can I support them with what they need.
And getting a good broker will provide support, whether that's finding you the best rate they have on their panel – or even peace of mind by confirming you're on a great rate with an existing lender.
Reach out. I'm always happy to help.
