There have been many changes to home loan rates and lending policies recently, and home finance is more complex than ever. This is driven by the government regulator APRA forcing lenders to implement changes to their credit policies and subsequent interest rates in an effort to ensure the housing market slows down.
We’re here to keep across all the changes and provide ongoing credit advice and ensure we save you money through competitive interest rates and the correct loan structure for your strategy.
Lenders now offer varying interest rates depending on:
– the purpose of the loan (whether it’s for a home or investment property)
– the size of your deposit (if you’re buying) or equity available (if refinancing)
– whether your repayments are principal and interest, or interest only
For example, we recently had one client who had purchased an investment property but then moved into it after a few years, making it her principal place of residence. As a result of the new changes, she was now paying a much higher rate of interest than necessary as the lender had classified her loan as investment. We were able to restructure the loan and save her several hundred dollars per month in interest.
Another client was paying interest only on their home loan which was an appropriate strategy at the time of the purchase several years ago. Now with the significant increase in interest only rates on principal places of residence, we reviewed their overall strategy and potential interest rate savings and determined they were better off refinancing to principal and interest repayments and paying off the loan.
If you have a car loan, personal loan or credit card debt, you may be able to take advantage of increases in property values to consolidate debt, pay less interest and increase your cashflow.
Additionally, it may be time to consider fixing as there are many great fixed rates on offer as well. With talk in the media of future rates hikes in the next year or two, fixing can help provide certainty around your repayments.
Please contact me if you, a family member or friend, would like to discuss how you can:
– maximise your financial position,
– consolidate debt,
– save on interest,
– increase your cashflow or,
– purchase a new home or investment
We welcome referral of our service to friends, family and work colleagues who may benefit from our service.
