Will interest rates rise?

15 Mar 2021

Rumours have been circulating that we will be seeing an interest rate rise from the RBA in response to the market conditions.
But what does this really mean for you as a mortgage holder or someone looking to buy?
There is no doubt demand for housing in WA has soared. The record low interest rates are fueling a surge in property prices and buyer expectation, so how can you put yourself in the best position and avoid any nasty surprises? 
In March, the RBA’s review stated that the cash rate would remain at a record low of 0.10%, but there has been speculation that that may not be the case for much longer and we could see interest rates rise. However, the Reserve Bank have stated that due to the unlikely rise in wage growth, the prospect of an increase is unlikely until ‘at least 2024’.

To avoid the uncertainty and secure the best possible loan, here is what you can do to make sure you are getting the best rate.

1. If you are a current homeowner, now is the time to reach out to one of our brokers, have them look at your loan value and circumstance to see where you want to head in the future. They will be able to look at your current offering and provide advice and recommendations on whether you should switch to a different product for a better rate or work with your current lender to negotiate a lower fixed rate, which could see you saving thousands of dollars over the course of your loan. 

2. If you a buyer in today’s market, it has never been more important to have your finances in order to put in a strong offer on the home of your dreams. With competition for property at an all-time high, being able to put in an offer with finance approval will speak volumes to the Agent and sellers, moving you into a stronger position to buy. Speak to one of our brokers to get you ready to make a secure offer today.

3. If you are an investor, it may be time to look at consolidating or paying down debt when money is ‘cheap’. Our dedicated team can advise on what is best for your portfolio and how to move forward if you wish to expand it further.  

Speak to one of our mortgage brokers today for an obligation free conversation on what we can do to help you.
Financial Advice Disclaimer: This information is general in nature. Mortgage brokers do not provide financial advice. Clients seeking financial advice will be referred to a qualified financial planner.

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