Well, the time has finally arrived, and banks are responding to the RBA’s recent rise as it attempts to combat rampant inflation. The interest rate hike has been expected; however, the size of the most recent rise was higher than expected.
As always, now is not a time for panic, instead, it is a time for reflection and careful thought – and of course, taking stock of your situation.
You might not think it, but now might be the best time to engage an independent broker (with no real affiliations), to review your current interest rate. Banks are still offering some very sharp rates to owners who have decent equity in their homes (and in many instances, these rates will have a two in front of them).
Taking the time now to review your rate, and then successfully find a newer rate, may put you in a better position to absorb future rate rises.
When was the last time you valued your property?
The other thing you should also consider is the value of your home – when was the last time you had it valued? If the last time was pre-boom, you might be surprised at what your home is worth now.
The uplift in the value of your home is likely to be substantial, resulting in a significant reduction in your LVR. What does this mean for you as a homeowner? Well, it means that the lower loan to value ratio means you might slot into a new tier for rates which may give you access to much better rates.
More banks are doing this right now as those homeowners with substantial equity and lower LVRs are seen as safe bets and are rewarded accordingly.
If you are holding back because you aren’t sure about what the impacts of refinancing might have on you and your current situation, get in touch with the MAW Money team.
Refinancing is a straightforward process, and our expert team will guide you through the entire process – from having your house revalued to assessing and accessing rates that work for you and your situation.
So, if you want to test the market and see if you’re getting the best available lending solutions to suit your needs, or you want to know if you can leverage the uplift in your home’s value to access better rates, get in touch with our expert team today.