Here are some ways that may help you insulate yourself in case of a rate hike:
Reduce the interest on your home loan by opening a mortgage offset account. According to Bessie Hassan of research house finder any cash you may have in it will be offset against the capital you owe on your loan.
Contrary to common perception lenders are still keen to lend to those borrowers especially to owner-occupiers wanting a principal and interest loan and who have job security, regular incomes and good credit records. If you are an attractive borrower there is never a better time to negotiate home loans! So important that borrowers do all their research and also find a good mortgage broker who would have current know-how where all the good deals are to be had.
Pay More Often
Power It Down
If you have any spare capacity to put more in your mortgage, now is the time to do so.
According to research house Canstar an extra $400 a month can make a huge difference. On a $1million home loan (as an example), this could save you interest of $130,000 and cut your 30-year loan term to 25 years (based on 4.45%).
Any questions please feel free to call Merv Smith Realty on 07 3870 3888.