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With interest rates continuing to rise, what are my options?

June 20, 2023

As interest rates continue to rise, homeowners across the country are feeling the financial pinch. Many individuals who had previously locked into fixed rates before the COVID-19 pandemic are now facing rates close to 6%.

To shed light on this issue, we spoke with Craig Betalli, a Senior Broker from finance specialist Our Broker, who provided valuable insights and guidance on how homeowners can navigate these challenging times.

According to Craig, it’s only natural that the sudden jump to nearly 6% has left many individuals concerned about their mortgage expenses and overall financial stability.

Fortunately, Craig emphasised that homeowners still have options to reduce their home loan costs. One viable alternative is opting for one, two or three-year fixed rates, currently standing at around 5.49%. This option offers some financial relief especially with some variable rates now surpassing the 6% mark.

Considering the changing interest rate landscape, it may be an opportune time for homeowners to seek guidance from financial specialists such as Our Broker. Consulting with professionals who understand the intricacies of the market can help homeowners make informed decisions and develop strategies to mitigate the impact of rising interest rates.

Craig also acknowledged that fixed mortgages come with a potential risk. If the RBA decides to decrease rates in the future, property owners could find themselves locked into a higher interest rate. However, he advised homeowners that the suitability of a fixed rate depends on individual circumstances. Likewise,

Craig advises utilising the power of a redraw or offset account options linked to your home loan as they can effectively reduce the overall interest expenses in the long run.

Each homeowner's financial situation is unique, and factors such as income stability, future plans, and risk tolerance should be carefully evaluated. Consulting with experts such as Our Broker can help homeowners weigh the pros and cons of fixed rates and determine the best course of action based on their specific circumstances.

For a no-obligation conversation about your mortgage options, reach out to Our Broker at 1800 913 677. Let's discuss your needs and explore the possibilities together. Give us a call today!