Fixed-rate mortgage ending soon? One in five Australians will face what is called a mortgage cliff as their fixed-term home loans come to an end and they face an increase in their interest rate payments.*
Home Owners 2023 Mortgage Cliff In Australia
Homeowners facing the end of their fixed rate mortgage repayments could prepare for the change by taking these proactive steps:
- Get the financial details you need to know. When your fixed-term period ends, find out what interest rate and repayment amounts apply.
- Don’t wait until the last minute — plan ahead! Get in touch with a mortgage broker at least three months before your current fixed rate expires, so they can help calculate and assess all of your options.
- Consider your options – Refinancing may help you. Negotiating a better loan from your existing lender or considering alternative lenders are all ideas worth exploring.
Refinancing Your Mortgage In Australia 2023
When your fixed-term period is about to end, it is the perfect time to assess your home loan to ensure that it’s still working for you. This is when refinancing can be a valuable option to consider.
Refinancing is the act of settling your existing mortgage by acquiring a new one, which can be from your current loan provider or a new one altogether.
Mortgage Refinance FAQ's
What are the benefits of refinancing your home loan?
Want to take advantage of more loan features while enjoying a better interest rate? Refinancing your home loan may help you get freedom and flexibility.
Refinancing may allow you to secure a lower interest rate on your home loan, which can help reduce your monthly mortgage payments.
Why should you consider refinancing your Mortgage?
Refinancing could be a positive financial move for those who view their current loan as not meeting their long-term needs. It could potentially reduce your payments and lower your interest rate.
Additionally, refinancing your home loan might also help you reduce debt obligations through consolidation or switching from variable to fixed loans.
If you believe that refinancing may better suit your current situation, it is a worthwhile idea to talk with a mortgage broker who can provide tailored advice on how to go about making this transition, so it benefits you.
What to do next if you choose to refinance your home loan?
Uncertainty around mortgage rates can leave homeowners anxious about their financial future. Don’t bury your head in the sand and act now. Compare the cost of switching your mortgage here.
Still not sure? At Orchard Mortgage Brokers Sunshine Coast, Nicky Orchard, Luisa and our team are available to help provide guidance and explore the options that fit your current needs.
Our comprehensive review process will assist you in assessing which course of action is beneficial for both short-term and long-term goals, so that you have peace of mind knowing your finances remain safe during this challenging period.
We provide Complimentary Appts with Nicky Orchard and Luisa Lopez
Our experienced mortgage brokers will help you find the right loan for your needs. Whether you’re looking to buy or sell, we’ll make sure you get the loan that works really well for your situation.
Licensing statements: Credit Representatives 364849 and 532460 are authorised under Australian Credit Licence 389328 General disclaimer: This page provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.
*source – Article written on 31/1/23 by Mary Or – https://www.mpamag.com/au/news/general/how-to-cushion-the-fall-from-a-mortgage-cliff/434438