In particular we focus on getting the loan structure right the first time, choosing which lenders to use in the right order (yes this is important) and finally getting our clients the best deal possible.
Interest rates. How high can they go?
Marty McDonald
All banks and lenders will no doubt pass this latest increase on to borrowers in due course with ANZ the first out of the blocks to announce their change effective from mid this month.
The current consensus seems to be that we are in for between 1 and 3 more 0.25% rates rises this year. Major lenders CBA, Westpac, NAB are predicting 1-2 more this year. Our opinion is that we are probably going to see one more next month, then a wait and see approach.
If the consensus forecast is correct rates would have risen 3.50% - 4.00% in about a year which is just crazy when you think many banks don’t pass on the higher repayments to borrowers for quite some time after rates increase.
We like the analogy of the economy being like someone taking 9 shots of vodka in a row and then waiting to see how it affects them. Probably not too well! We know one major lender who only updates a borrower’s repayments once a year! On that basis alone we think the RBA has overshot what they needed to do. Time will tell.
If you are worried about your repayments, worried your current variable rate is not competitive or your fixed rate is rolling off, here are some tips on how we might be able to help.
About the Author: Marty McDonald is principal of mortgage broker “Mortgage
Experts”. Marty specialises in assisting active property investors with loan structuring advice and
implementation as well as helping credit worthy borrowers with slightly outside the box income and employment
situations. Find Marty on
Facebook and
LinkedIn.
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