Taking Advantage Of Low Rates
We are currently enjoying a period of record low home loan interest rates and there are several opportunities available for you to take advantage of these rates.
Reduce your loan
The first option is as simple as maintaining your current level of mortgage repayment when home loan rates are falling. This strategy has three great benefits:
- Reducing your loan
- Building
- Owning your home
Many loans will allow you to withdraw these extra payments, allowing you access to these funds in the future if the need arises.
For example, if your current mortgage repayment is $1,500 a month and interest rates fall resulting in a reduced repayment of $1,425 a month, you should try to maintain the $1,500 repayment. This will speed up the time it takes to own your own home.
Consolidate your debts
Another opportunity is to take advantage of the low interest rates by accessing the equity in your home to pay off your high interest debts. This could be a chance to pay off credit cards or personal loans which have high interest rates.
You may be able to increase your home loan by a sufficient amount to payout these personal debts utilising the low home loan interest rates available.
Use your equity
Equity in your home may also be used for a number of reasons including renovations, personal investment (such as buying shares or to assist in purchasing an investment property), or purchasing a car. This could remove the need for a high interest personal loan and allow you to purchase using low home loan interest rates.
This period of low rates is a perfect time for you to reassess your finances. So give us a call today to discuss how we can help you take advantage of the current market conditions.