The interest rates are on hold for the past three months, market experts believe that the hype is near its end.
It is wise to compare your current charged interest rate to what’s on the market now,
Between 5% to 8%, by using one of the many available websites on the internet.
If a better rate is found it would be advantageable talking to a broker and considering switching lenders.
Be aware there are fees involved, so your new rate needs to be worth the cost and hassle and if you don’t want to switch, you might like to consider talking to your current lender for making changes to your existing loan and compare if variable or fixed rate serve you better.
The variable rate has been below the fixed rate in most times, however, there isn’t much of a gap currently.
You might have issues with cash flow in the medium term, a fixed rate might be worth considering, which in this case you won’t pay much of the principal to lock in that security, meanwhile economists predict the Reserve Bank will lower rates next year you decide what will benefit you then.
Your financial advisor or lending broker may have several alternatives.
They will assess your financial position and identify the lenders most likely to approve your application.
This is important because all loan applications are recorded on your credit history, and a series of knockbacks within a short period doesn’t look good for your credit rating.
Your broker will then leverage their relationships with your preferred lenders to negotiate the best rate possible for you.
On top of that, they’ll do all the paperwork for you, making the process easier and simpler.
The content on this article does not constitute financial, legal or any other professional advice.
Users should consult with the relevant professionals for specific advice related to their situation.