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Is now a good time to get a fixed interest rate?

Interest rates have been a hot topic in recent months, and will continue to be for a while. 

Since the beginning of the year, the Reserve Bank of Australia has started raising the cash rate, resulting in significantly higher interest rates than the last few years. 

Perhaps one benefit of the pandemic has been the all time low interest rates, allowing many to purchase their first home. 

However, the change in interest rates has placed many households on high alert and continues to contribute to a sense of instability across the board.

What can you do to get more stability?

Fix your home loan now!

While the interest rate that is available to you now may be significantly higher than expected, interest rates are not likely to fall back to all time low levels we saw during 2020 and 2021. 

In fact, prior to the RBA cash rate increase, lenders had already begun to increase their fixed rates by a significant amount. 

How to manage the ongoing changes

Rising interest rates are never welcomed, so now is the perfect time to take a good look at your cash flow position to ensure you’re prepared for any unexpected rate changes.

Here are a few simple questions to ask when looking at your cash flow position: 

  1. What can I afford?
  2. What rate increase would result in financial hardship?
  3. Am I stuck in an uncompetitive rate?

While any significant change can create a sense of instability, leading to quick decisions. It’s important to remain calm – don’t always believe all the hype!

Essentially, the RBA is trying to reduce demand, while supply catches up. 

Here are our top tips to manage these changes: 

  1. Don’t be fearful
  2. Learn to adjust
  3. Keep good reserves in place

For more information and to discuss how you can safeguard your properties amid rising interest rates, book a discovery session today.

Disclaimer: The information provided in this blog and video is not legal, taxation or financial planning advice. It has been prepared without considering your specific needs, objectives and personal financial situation. Before acting on this information, we recommend that you consider carefully if it is appropriate for your needs, objectives and personal financial situation. All loan products are subject to lender criteria and approval. Fees, terms and conditions apply.

The average Australian earns $2.07 million over their working life, yet 80% will still find themselves broke after decades in the workforce.

You don’t have to be average. Use property as a tool to get you financially sorted for life!

We look forward to journeying with you on your way to lifestyle choices and wealth.