In every crises there is opportunity
If you have tuned in to the news recently all the talk is around rising interest rates and if they will ever end.
With an average variable interest rate of 5.88% and 2 year fixed rates at 5.9% currently, many mortgage holders are really feeling the pressure on the household budget.
Here are 4 opportunities to consider in our challenging times.
- Find a bargain within the pack– With a choice of over 60 lenders and more than 1,000 products in Australia, its highly likely that there’s a better home loan deal out there for you.
- Big 4 banks (CBA,NAB,WESTPAC and ANZ) who control about 82% of all home loans, currently have an average variable interest rate of 6.5% which is 0.62% more than the average across the market. On a $1,000,000 loan, that’s $402 a month more.
- Do better than the market and get an interest rate lower than the average and save even more!
- Pay more off your principal- If you can find even a small amount of money left over each month consider making an extra payment that goes directly off your principal. Even a little bit helps in the long run. Remember, most loans are over 30 years which is a long time.
- On a $1,000,000 loan by making as little as $200 a month as an extra repayment, you can save $110,810 in interest and 2 years and 5 month off your loan term!
- Struggling to find even a small amount? Try our quick wins service to find money you thought you never had!
- Plan for the future- Sometimes a crisis is the trigger for change. Start to imagine what your life would be like without a mortgage and how you will get there faster! Spend more time doing the things you love most.
- Control what you can control. Interest rates change over time which you can’t change, but what you can change is how you respond to it. You CAN save money right now and pay off your home loan faster, but I can assure you that you won’t unless you take action and as the saying goes “don’t leave for tomorrow what can be done today”.
If you’re thinking it’s all too hard, your right, it isn’t easy. Talk to a qualified, experienced professional.
Have a great week,
Mike
