Let’s rip the band aid off. It’s raw under there so this might hurt a bit.
The Reserve Bank raised interest rates again today, by another 0.25%, marking the highest cash rate since 2012
The banks will now pass on the rate hike, in full. No surprises there…
Did you know that whilst there are rates of low 5s some customers are still paying mid 6s, for the exact same loan?
Well, one of a few reasons:
1) They didn’t know you could do that, what their rate is or if it even matters
2) They haven’t asked their bank for a better deal
3) They have asked and the bank said “NOPE”
Points 1 and 2 are mainly ignorance or timidity but now that you are reading this, that won’t be you… You’ll go check your home loan details, cry a bit and then you’ll take action and get in touch with us. Could be the best 5mins you ever spend (the cry and the action). I’ll almost guarantee it.
But theres one that’s not quite on the list… We will call it 3.5
3.5) They are Mortgage Prisoners
Ever heard that term?
Let me explain, because I know plenty of them…
You asked your bank for a better deal. They said NOPE. But, you can’t go anywhere because you can no longer afford to get a loan elsewhere because rates have gone up or your situation has changed.
As recently as today I had a client who is paying $14000 more per year than they should but cannot move to a new lender.
It sucks so bad. It’s robbery and un-Australian in my opinion.
15 years ago, when I got a gig as a bootcamp instructor in a maximum security prison I learned that you must distance yourself from thieves.
So, this is a message to all home owners out there… Before you become a mortgage prisoner;
“Leave the thieves”
(it’d be a crime not to make it rhyme)
If you feel your bank is taking advantage of you, or you aren’t sure then run it past me. Let me show you what can be done.
So far we have saved people over 50 years on their home loans, in the last 50 days (not a typo).
For what it’s worth I am not here to make light of the current situation in our lending markets, I am not here to pretend that this doesn’t matter or things are only going to get better from here. Truth is, I don’t really know what’s going to happen for the rest of the year on interest rates. I can’t control it. Nor can you.
Your monthly payments just went up again. Mine too and it proper sucks!
Many economists get this wrong each month but many are saying we are peaking on interest rates.
Let’s hope they are correct…
Until we chat just know that even if you are not one of our clients (yet) I am on your side and unlike your lender I want you to pay off your home loan years earlier.
Let me help.
“In all labor, there is profit, but mere talk leads only to poverty.”
So, talking over. Action time. Over to you.