FINANCE WITH LYNETTE HOME LOANS

Lynette Melis is the Franchise owner of LoanMarket Kyabram, is an Award-Winning Finance Broker with over ten years broker experience and is a local of Tatura for over thirty years.

What can I do if my repayments are getting too high?

As the cash rate continues to trend upward, the Reserve Bank of Australia (RBA) has continued its trend of increasing the cash rate.

According to our data, all lenders in our panel increased variable interest rates on home loans in line with the cash rate increase last month. This means homeowners with variable rates or split loans will have already noticed an increase in repayments.

If you find your repayments have jumped to a level you find difficult to repay, it is a good idea to review your options with a finance broker.

Is now a good time to fix my home loan?

As interest rates across the board are continuing their upward trend, anyone on a variable rate will have noticed their repayments have increased. The idea of a fixed rate with locked-in repayments may be appealing, especially with predictions the cash rate will only continue to rise.

Speaking with a broker could help determine whether refinancing is right for you. While lenders across the board have increased rates, there are a number of cash back offers, where a lender will provide a cash payment to refinancers who make the switch. We may also be able to negotiate a better rate for you as a new customer, or for if your equity has increased.

Other ways a broker may be able to help include:

Consolidating debt: If you have loans outside of your mortgage, such as a car or personal loan, or credit card debt, you may be able to roll them into your home loan. This could result in a lower interest rate and simpler repayments.

Reviewing existing loan: If there are features attached to your home loan you do not use, it could be possible you could transition to a different loan with lower fees or interest rate.

Repricing: Your lender may be open to lowering your interest rate or fees, especially if your equity has changed since your last review or if your rate is not competitive.