Do you have a variable home loan? You need to read this
Expert predicts mortgage rates to climb to 3.5 percent, so it’s a good time to compare home loans.
New Comparison Site Allows Aussies to Compare Loans from 25 Providers
Mortgage rates could be on the verge of skyrocketing over the next two years, if one expert’s predictions prove to be true. John Edwards, former board member of the Reserve Bank of Australia, has warned Aussies to anticipate eight rate hikes over the next two years, ultimately reaching a rate of 3.5 percent.
The cash rate has long remained at a steady 1.5 percent, prompting speculation that its next move will be up. Edwards suspects that as the economy strengthens, the rate will increase, which would be bad news for variable rate mortgage-holders.
In a rapidly changing market, homeowners are being encouraged to compare mortgage rates on a quarterly basis. The potential for rapid rate hikes provides added motivation to shop around, a move that could save you money and time on your mortgage.
Comparing quotes is easy through HomeLoansAustralia.com, where you can get an instant mortgage snapshot of current offers on the market. If you see a rate that is lower than what you’re currently on, a mortgage expert can help you make the switch over the phone.
It’s a simple way to save on your home loan without wasting any time. The service makes home loans easy to understand, and your consultant will guide you through the process.
If interest rates were to rise by the anticipated 2 percent, the monthly repayment on an average loan of $371,000 would increase by $490.* That’s an extra $5880 a year that many homeowners don’t have.
Homeowners who have a high mortgage debt would be especially affected, and likely forced to reduce spending in other areas. With other bills like electricity and groceries also increasing, families are already struggling with the household budget.
Fortunately, there are often savings to be had if you are willing to compare home loans and consider switching lenders. Home owners can’t know for certain if rate increases are on the cards, but you have the ability to look for a better deal at any time.
At this stage Edwards’ predictions are just that—predictions. They may not come to fruition, but some type of interest rate increase does remain likely. The US Federal Reserve has already increased its rates, with the UK and Canada rumoured to follow suit.
To keep your mortgage under control, compare prices with HomeLoansAustralia.com. Switching to an affordable mortgage can have a serious impact on your long-term savings, and it doesn’t take long.
*Based on average home loan figures mentioned from finder.com.au money expert Bessie Hassan
Get Started Now:
Step 1: Select your State below.
Step 2: After answering a few questions, you will have the opportunity to compare quotes in your area and could be eligible for significant savings.
This article is opinion only and should not be taken as medical or financial advice. Check with a financial professional before making any decisions.