Have you found yourself Googling, ‘when will interest rates go down?’ or regularly checking the latest updates on current interest rates?
At Atlas Broker, we don’t claim to have a crystal ball that can predict the future, but we do pride ourselves on being proactive and keeping our clients up-to-date with relevant information.
Chief economist, Warren Hogan of Judo bank has engaged in conversation across multiple platforms suggesting two potential rate rises still to come in 2024.
At Atlas Broker, we believe in taking the front foot approach on such forecasts. Prepare ahead of the additional pressure this will put on you in the housing game or wanting to join.
The potential interest rate rises for this year can impact everything from mortgages and loans to investments and savings. How could it impact you?
- Borrowers, particularly those with variable rate loans, the prospect of rising interest rates can translate into higher monthly payments, potentially straining household budgets.
- Individuals with existing substantial debt burdens. Making repayments more challenging to manage.
- First home buyers and their borrowing capacity. Putting more pressure on available and servicing lifestyle.
- Existing borrowers looking to refinance. For those coming off a fixed rate it may mean you are not able to refinance as you be unable to service your loan at the new interest rate. This means you could be ‘trapped’ with your current provider.
To alleviate additional pressure and safeguard your financial well-being, consider the following steps:
- Create / update your budget.
- Explore refinance opportunity.
- Discuss a rate reduction.
- Review your fixed rate expiry.
- Educate your yourself on your borrowing capacity.
Understanding the implications of potential interest rate rises is paramount. While navigating these fluctuations may pose challenges, they also present opportunities for proactive financial management and strategic decision-making. By staying informed, adaptable, and diversified, you can better weather the shifting tides of interest rate rises.
Atlas Broker is here to help. Please contact us to discuss how you can proactively prepare for the potential rate rises and how to navigate this property finance space with confidence.
