Proactively manage your mortgage
The continuous focus on interest rates is a timely reminder for homeowners with a mortgage to remain disciplined in managing their finances.
The May rate cut may spark homeowners to consider switching their home loan from variable to fixed in order to capitalise on the historic low interest rates that we are experiencing.
It is a good idea to consult a bank or loan consultant for a review of your loan to find out if it would be beneficial to tie up all or part of your loan to a fixed rate. Remember to weigh up the pros and cons carefully before making a decision.
In short, if you are a current mortgage holder, make an effort to proactively manage your housing finances and work closely with your lending consultant to make sure you are getting the best possible rate.
For those looking to enter the housing market for the first time, it is a good idea to first speak to your loan consultant and accountant about your current financial situation and come to an agreement on a sensible mortgage before you begin your property search.
Remember, it is also important to budget for future interest rate rises when working out how much you can borrow. Leave a buffer so that you can comfortably accommodate any future interest rate increases.
Anyone buying a home for the first time should try to spend three or four months setting aside their approximate monthly mortgage repayment, which effectively gives you a good idea of how your lifestyle will be affected by home ownership and managing a mortgage.
If you’d like to discuss your mortgage options, visit your local LJ Hooker office or ljhooker.com.au to make an appointment with a qualified LJ Hooker Home Loans consultant.