The rate hike alarm is back on
Just when we thought rate rises were over…
The rate hike alarm is back on.
And if you've got a mortgage, you're probably wondering:
“Are rates going up again?”
“Should I fix?”
“Should I do something now?”
I don't blame you.
We've been on an interest rate rollercoaster for the last couple of years.
And every time we think we know where rates are heading, something changes.
This week, some of Australia's biggest banks changed their forecasts.
NAB is now predicting another rate rise.
ANZ is warning of a hike later this year.
And CBA has also shifted its outlook following the latest inflation data.
The common theme?
Inflation isn't falling as quickly as many expected.
Which means another rate rise is back on the table.
But here's something we've been doing behind the scenes.
For the last two weeks, Anna, our mortgage broker, has been contacting the lenders of our existing clients and asking a very simple question:
“Can you do better?”
And the results have been pretty good.
On average, we've been able to negotiate a 0.20% reduction in their interest rate simply by asking.
Now, 0.20% might not sound like much.
But on a $700,000 mortgage, that's around $1,400 a year.
For doing what?
Asking the bank a question.
This is one of those things I see all the time.
People spend hours looking for ways to save money.
They cancel subscriptions.
Change phone plans.
Shop around for cheaper insurance.
And then quietly pay their bank thousands of dollars in interest without checking whether their rate is competitive.
Your bank isn't going to call you and say:
“Hey, mate. We reckon you're paying too much. Here's a better rate.”
Wouldn't that be nice?
So while we can't control what the RBA does next…
We can control how prepared we are.
That's how we think about mortgages with our clients.
Don't try to predict the future.
Build a position that can handle it.
If rates fall, great.
If rates stay where they are, we're okay.
If rates rise again, we've already thought about what that means.
And sometimes the answer isn't complicated.
It might simply be getting your existing lender to sharpen their pencil.
Or it might mean looking at a completely different loan structure.
Or perhaps your mortgage could be used as part of a bigger strategy to pay down debt faster and build wealth.
The right answer depends on your situation.
And that's where the conversation becomes more than just:
“What is the lowest interest rate?”
Because the cheapest loan isn't always the best loan.
It's about finding the right loan for your goals.
So, if we have arranged your home loan or investment loan, Anna has been working behind the scenes to see if we can get you a better deal.
And if we haven't arranged your loan, but you need help with a new loan, refinancing or your existing mortgage, reach out.
We can help with that too.
We've also created a simple 30-second tool so you can check whether your current mortgage rate looks competitive.
It's called the Mortgage Rate Rescue Tool.
Because we don't know whether the next move is up or down.
And honestly, neither does anyone else.
But you don't need to know.
You just need to make sure you're in a position where either way…
you're okay.
That’s what good financial planning is really about.
Reading is helpful. Having a plan is better.
Book your free 30-minute Discovery Session and let’s build a strategy that fits your life.
7Wealth Pty Ltd ABN 44609210246 is a Corporate Authorised Representatives and is authorised throughCobalt AdvisersPty Ltd ABN 64 628 654 099 who is an Australian Financial Services Licensee 512550. 7Wealth Pty Ltd is a Credit Representative ofAustralian Finance GroupLtd ABN 11 066 385 822 (AFG) Australian Credit Licence 389087.
This blog contains information that is general in nature. It does not constitute financial or taxation advice. The information does not take into account your objectives, needs and circumstances. We recommend that you obtain investment and taxation advice specific to your investment objectives, financial situation and particular needs before making any investment decision or acting on any of the information contained in this document. Subject to law, Cobalt Advisers Pty Ltd nor their directors, employees or authorised representatives, do not give any representation or warranty as to the reliability, accuracy or completeness of the information; or accepts any responsibility for any person acting, or refraining from acting, on the basis of the information contained in this document.
