Secure Loan Services

24/05/2022

How to Prepare for an Interest Rate Rise

With interest rates tipped to rise as the RBA begins to return the cash rate to a more normal level, homeowners are wondering what the best way to handle this new environment might be.

Many borrowers would never have faced a cash rate rise, given the RBA hasn’t hiked rates in over a decade. Fortunately, there are a number of things you can do to prepare for an interest rate rise.
Look for a lower rate

If you haven’t reviewed your home loan in a while, it might be worth speaking to a mortgage broker so you can compare other interest rates and home loan products on the market.

There can at times be lenders that offer competitive introductory rates, or there might be more suitable home loan products for your personal circumstances.

You never know unless you speak to a broker and compare your options.

Think about the end of your fixed rate

Over the past few years, there has been a big rise in the number of people taking out fixed-rate home loans.

This has proven to be a beneficial move in the short-term, with many borrowers having been able to lock in record-low interest rates.

However, as these loan products come to the end of their term, borrowers will have to look closely at their options. Typically, at the end of a loan term, you can revert to the standard variable rate that comes with the lender's loan product, refinance to a new home loan product or look to fix your rate again at what will potentially be a higher interest rate.

It’s well worth comparing your options ahead of time so you know what you are likely going to need to think about beforehand. You can compare your options and how the subsequent repayments might change in the future so you can position yourself with a solution that is right for your personal circumstances.

Get ahead

If your repayments are likely to move higher, then it’s worth being proactive and making sure you have a good financial plan already in place. Speak to a broker about what that might look like, so you know what you need to do.

You can look to put money away in advance if required or put together a budget that will help you manage your repayments.

If you’ve taken out a loan in the past few years, it’s likely your rate has been assessed with a serviceability buffer on your loan application. That should give you the confidence that the future repayments are still well within your budget.

15/05/2022

With interest rates tipped to rise as the RBA begins to return the cash rate to a more normal level, homeowners are wondering what the best way to handle this new environment might be.

Many borrowers would never have faced a cash rate rise, given the RBA hasn’t hiked rates in over a decade. Fortunately, there are a number of things you can do to prepare for an interest rate rise.

Look for a lower rate

If you haven’t reviewed your home loan in a while, it might be worth speaking to a mortgage broker so you can compare other interest rates and home loan products on the market.

There can at times be lenders that offer competitive introductory rates, or there might be more suitable home loan products for your personal circumstances.

You never know unless you speak to a broker and compare your options.

Think about the end of your fixed rate

Over the past few years, there has been a big rise in the number of people taking out fixed-rate home loans.

This has proven to be a beneficial move in the short-term, with many borrowers having been able to lock in record-low interest rates.

However, as these loan products come to the end of their term, borrowers will have to look closely at their options. Typically, at the end of a loan term, you can revert to the standard variable rate that comes with the lender’s loan product, refinance to a new home loan product or look to fix your rate again at what will potentially be a higher interest rate.

It’s well worth comparing your options ahead of time so you know what you are likely going to need to think about beforehand. You can compare your options and how the subsequent repayments might change in the future so you can position yourself with a solution that is right for your personal circumstances.

Get ahead

If your repayments are likely to move higher, then it’s worth being proactive and making sure you have a good financial plan already in place. Speak to a broker about what that might look like, so you know what you need to do.

You can look to put money away in advance if required or put together a budget that will help you manage your repayments.

If you’ve taken out a loan in the past few years, it’s likely your rate has been assessed with a serviceability buffer on your loan application. That should give you the confidence that the future repayments are still well within your budget.

06/05/2022

Talk to us at Secure Loan Services for your loan requirements.

RBA UPDATE | Effective May 4, 2022

For the first time in over 11 years, the Reserve Bank of Australia (RBA) has increased the nation’s official cash rate. Today’s monetary policy meeting resulted in a rate rise of 25 basis points, taking the 0.1% ‘historic low’, to a cash rate of 0.35%. RBA Governor, Dr Philip Lowe stated, “The economy has proven to be resilient and inflation has picked up more quickly, and to a higher level, than was expected. There is also evidence that wages growth is picking up. Given this, and the very low level of interest rates, it is appropriate to start the process of normalising monetary conditions.” CEO of outsource Financial, Tanya Sale made mention, that if history is anything to go by, we can expect “changes in the air.” Elaborating further on what borrowers might expect, Ms Sale said, “Over the next 1-2 years, what will happen (and is starting to happen already) is that interest rates will rise in very quick succession, property sales will slow, and property prices will move downwards from prior levels.”

INSIGHTS | Preparing for rate rises

With many homeowners now wondering about the best way to handle this new environment, fortunately, there are a number of things you can do to prepare for the impending interest rate rises. Some options include, looking for a lower rate, pre-emptively reviewing the end of your current fixed-rate term, and even getting a financial plan in place to get ahead in your repayments. If you haven’t reviewed your home loan in a while, it is worth speaking to a mortgage broker so you can compare other interest rates and home loan products on the market. There can (at times) be lenders that offer competitive introductory rates, or there might simply be more suitable home loan products for your personal circumstances. Speak to a trusted broker and compare your options.

07/04/2022

Talk to us for all your loan requirements. With interest rates rising this is a good time to review and sharpen the rates of your existing loan. Call us now.🏠🕍

RBA UPDATE | Effective April 6, 2022

Announced off the back of the Federal Budget, this month’s official cash rate has once again been held at 0.1% by the Reserve Bank of Australia (RBA). As stated previously, the RBA will not raise the rate until annual inflation is “sustainably” within the 2 - 3% range – meaning annual wages growth will also need to rise above 3%. It is however interesting to note, that inflation has accelerated at a faster pace than expected, fuelled by the Ukraine invasion and disruptions to supply chains. Meanwhile economists are still speculating whether the next rate rise will come about as soon as June, or hold out a little longer, rising instead in August or September.

ANALYTICS & INSIGHTS | Looking back on March

House prices across Australia are still seeing upward momentum, despite both Sydney and Melbourne markets remaining relatively flat in the last month. Brisbane and Adelaide continue to be the two standout performers in recent times, with monthly increases of 2% and 1.9% respectively. Perth has seen a small uptick in house values after borders re-opened in February, with values up 1% over the past month, while Darwin and Canberra continue to see modest growth. Nationally, house prices are 0.7% higher in the last 30 days.

16/03/2022

Property to Outperform Stocks and Bonds

Real estate around the world is expected to outperform both bonds and shares over the next five years, according to a new report from Oxford Economics.

Between 2022–2026, Oxford Economics have predicted total returns for real estate and real estate investment trusts (REITs) to average 6.5 to 7 per cent per annum.

This is significantly higher than bonds and equities, which are expected to return just 0.7 per cent and 2.5 per cent per annum, respectively.

Oxford Economics expects interest rates to remain at low levels in the coming years, which will help underpin real estate prices and drive economic growth.

06/03/2022

RBA UPDATE | Effective March 2, 2022

At today’s monetary policy meeting, The Reserve Bank of Australia (RBA) has once again held the official cash rate at 0.1%. When commenting on the decision, RBA Governor Philip Lowe explained that “the global economy is continuing to recover from the pandemic… [and] the war in Ukraine is a major new source of uncertainty.” With inflation spikes and the prices of many commodities seeing sharp increases, PropTrack Senior Economist Eleanor Creagh, believes the decision was to be expected. Ms Creagh highlighted that while some are entertaining the possibility of rate hikes as soon as June this year, she explained that the board are “explicitly waiting for [empirical] evidence that wages have turned a corner toward sustained growth.” Ms Creagh suggested that this may mean we won’t see a cash rate hike until August, or even November this year.

ANALYTICS & INSIGHTS | Looking back on February

The record run for property prices has continued in the month of February, with house prices across the country up 0.4%. The two hottest markets in the country continue to be Brisbane and Adelaide, with increases of 2.2% and 1.6%. Nationally, house prices are 1.1% higher this year across the five largest capital cities, following a record 22.1% increase in 2021, with the momentum expected to continue. The latest PropTrack Property Market Outlook 2022 from REA notes that some capital cities could see growth as high as 12%, giving homeowners more gains to look forward to. According to the report, homeowners in Hobart (9-12% predicted growth), Brisbane (8-11%), Adelaide (6-9%) and Canberra (6-9%) stand to be the leading states this year. Followed by Perth (3-6%), Sydney (4-7%), Melbourne (4-7%) and Darwin (5-8%).

06/03/2022

House price momentum continues in February

The record run for property prices has continued in the month of February, with house prices across the country up 0.4 per cent.

The two hottest markets in the country continue to be Brisbane and Adelaide, with increases of 2.2 per cent and 1.6 per cent.

In 2022, Brisbane house prices are now up 3.9 per cent. Adelaide is also looking strong, recording a 3.2 per cent rise this year.

Nationally, house prices are 1.1 per cent higher this year across the five largest capital cities, following a record 22.1 per cent increase in 2021.

28/02/2022

House Prices Start the Year in Strong Fashion

House prices have started the new year in much the same fashion as they ended it, with another rise across the country 📈

The latest data from CoreLogic shows that house prices nationally are up 0.7 per cent for the month of January 💰

It’s been a similar story for the best-performed property markets, with Brisbane and Adelaide continuing to lead the way with rises of 1.9 per cent 💻

Sydney and Melbourne have so far seen rises of 0.7 per cent and 0.2 per cent as listings continue to rise.

Over the past 12 months, national house prices have soared 21.3 per cent higher 💸

10/02/2022