It’s that ugly word again Inflation and it’s currently running at a 32-year high of 7.3%!
How does that affect you as a homeowner and what can you do to weather the fast-approaching storm?
We are all experiencing increases in the cost of food, transport, and housing but for homeowners due to coming off a low-interest rate and stepping into the current lending market those with mortgages around $800,000 could be paying an extra $1,400 a month for their repayment. Not to mention the increase in rates…
Now is the time to take a serious look at options.
Banks are currently out in force with some pretty attractive offers that, if used wisely, can assist with combating a major increase in your cost of living.
Here are a few ideas…
Switching your loan/refinancing
- Take advantage of the competitive cash-back incentives currently on offer
- There are banks that are paying up to $20,000 cashback as an incentive to refinance your loan with them
- You can use that extra cash to reduce any debt you may have eg cards, car finance or use it to top up the higher mortgage repayments
Structuring your mortgage account to link to your savings account
- Any money in your savings account is offset against your loan
- This means that no interest is charged on the portion of your mortgage that is offset by the amount in your savings account. This is an excellent tool to reduce the interest cost on your mortgage
- There are gains to be made when downsizing your home, which means selling for the right price and buying back in at the right price
For this option, you need to ask yourself…
If the price was right, would I sell?
What would be that right price?
What would be my ‘keep’ price?
What areas would I like to move to?
There are lots of options out there therefore speaking to the experts who assist people on a day-to-day basis is definitely a good option. Let’s have a free no obligation chat over a coffee, or you can reach out to Cameron Marcroft at Loan Market Central who is our go-to adviser and have assisted many homeowners like you. (Voted Top Advisor and Brokerage 2021/2022.)
He will simplify the process for you, and negotiate with 20+ lenders to get you the best interest rates and fee structure that works for you – not your bank.