The Reserve Bank recently increased official interest rates by 0.25 percentage points and has signalled more rate rises are on the way. But don’t panic. Instead, fight back.
How? By refinancing to a comparable home loan with a lower interest rate.
When you refinance, you’ll have to go through the same qualification process you experienced when you took out your current home loan.
So look for ways to reduce your expenses and increase your savings rate.
Consider lowering your credit card limit, as a higher limit will reduce your borrowing capacity, even if you pay off your entire credit card debt each month.
Maintain or even increase your credit score by paying all your bills on time, and, possibly, closing out any personal or car loans you might have.
I work with a large panel of lenders, many of which are offering special deals to people who refinance, so there’s a good chance I can help you switch to a lower-rate loan. That will help offset any future rate rises.
Terms are subject to approved persons only. This information is true and correct as of 5/05/2022. All of the content above is general in nature and may not suit your personal needs, situation objective & goals.