Australian homeowners are becoming more concerned about the potential of rising mortgage interest rates and affordability of properties. With further hikes to interest rates likely for 2016, there is no better time than the present to sit back and review existing home loans and take action for the future. Interest rate rises tend to be reflected in lower demand for properties, so home sales may well be impacted soon.
Rising Interest Rates
Interest rates on mortgages have risen throughout 2015 as the major banks have passed asset holding charges on. New capital targets announced in December 2015 mean interest rates are likely to rise again in the near future. Coupled with a sluggish economy, this could mean bad news for homeowners who may already be struggling to meet mortgage commitments.
This, however, does not immediately spell trouble for homeowners and prospective homebuyers. There are ways in which mortgages and home loans can be renegotiated, giving greater flexibility for years ahead. Wealth creation and planning for the future is all about being proactive and generating the utmost capital and income from existing finances. Your house and property is one of your major assets, so saving money ongoing is important.
Restructuring Home Loans
South East Queensland homeowners can find excellent mortgage brokers on Sunshine Coast, like those from Ethica Private Wealth Specialists, for discussions surrounding any existing home loan. It’s possible to restructure an existing home loan to take advantage of lower interest rates and benefit any homeowner.
Taking advantage of lower interest rates means there will be more cash in the home spending kitty which could be used for savings to create a useful pot for later in life. No matter what your personal situation, taking advantage of good financial planning helps develop your wealth to best abilities, while making you and the family far more secure and relaxed about what the future may bring.
Take time to contact your local mortgage broker to discuss the available options for your existing home loan and find out the potential benefits of restructuring the mortgage. If you have held your mortgage for some years, it’s likely that your circumstances have changed. By consulting your local mortgage broker, you can make sure your home loan applies to your present wants and needs, while also considering your future goals and aspirations. Your financial health is just as important as your personal health, and taking a proactive approach to finances is one of the best ways to start off the New Year.
Pimco Sees Aussie Mortgage Rates Rising as Rules Squeeze Banks, Bloomberg, December 15, 2015
Lending rules hinder property recovery in Perth, Brisbane, Domain, December 14, 2015