fbpx
1300 416 700
News

Now is the time to fix!

Now is the time to fix!

There is a lot of uncertainty at present around interest rates and what the RBA is planning to do given the current economic climate. Some economists would say that we are now much more likely to see rising interest rates as recently the US Fed cash rate for the first time in 18 years surpassed the RBA cash rate.

However, others question whether the RBA will increase interest rates considering there are already signals of an economic slowdown, especially in the residential property market.

Nevertheless, current fixed interest rates on offer are not far off all time record lows (early FY17) and it would be safe to assume that it’s only going up from here. The Sydney Morning Herald released an article last week titled “Now is the time to fix” where financial adviser and stockbroker Nicole Pedersen-McKinnon’s explained why she believes rates are going to increase. In fact, many believe that if there wasn’t a Royal Commission investigation into banking conduct currently underway, then we would have already seen an interest rate rise from the major banks, independent of the RBA, as the bank bill swap rate (BBSW) has already increased by approximately 0.30-0.40% in the past 3-9 months.

Fixed interest rate

We are encouraging our clients to at the very least limit their risk and exposure to interest rate rises by simply fixing in a portion of their debt, usually around 50% is ideal, however this would depend on your individual circumstances and financial position.

Did you know that in the last financial year there have been significantly more increases than decreases in owner occupied mortgages, across all fixed terms? Don’t wait for further increases, speak to one of our trusted brokers about fixing in your interest now!






    Learning

    Related Articles

    News

    Now That Inflation Is Back Under 3%, Is The RBA About ...

    14 Oct 2024
    News

    The Federal Budget and Housing

    6 Jun 2024
    News

    Everything You Need to Know About the Reserve Bank of ...

    1 Mar 2024
    News

    Why Mortgage Arrears Haven’t Spiked, Despite Higher Interest Rates

    14 Feb 2024
    News

    The Property Market’s Road to Full Recovery

    8 Nov 2023
    News

    Could Phasing Out Stamp Duty Solve Australia’s Housing Supply ...

    8 Nov 2023
    News

    How the NSW Government Plans to Fix the “Housing Crisis”

    9 Oct 2023
    News

    When Will Home Loan Interest Rates Come Down?

    14 Sep 2023
    News

    Why Are Property Prices Forecast to Rise Even Though Home ...

    7 Aug 2023
    News

    Pressure Mounts For Australia’s Rental Markets as Construction Slows

    13 Jun 2023
    News

    Major Economists Update Forecasts as Australian Home Prices Rise

    16 May 2023
    News

    NSW Labor’s Proposed Housing Policies Explained

    17 Apr 2023
    News

    Why The International Banking Crisis Should Have Little Impact on ...

    17 Apr 2023
    News

    When Do Experts Think The Cash Rate Will Peak?

    10 Mar 2023
    News

    With Inflation Rising, Where to Now for Interest Rates?

    9 Feb 2023