What can we expect in 2023?

Are you one of the lucky ones that locked in to a low (perhaps sub 2%) fixed interest rate on your home loan between 2020-2022? Around 35% of all mortgages are currently fixed (up from the usual 25%) and will be expiring and reverting to the variable rate during 2023!

With cash back offers available and basic variable rates still just shy of 5%, a refinance may be on the cards for you in the New Year. If so, get ready now! What can you do to achieve a smooth lending experience? Get in control of your finances, make sure those direct debits are honored each month (set up a separate bank account to hold these funds if required), lower your personal credit card and personal loan debt by paying extra each week/ fortnight. If you haven’t already done so, set up a household budget and monitor your actual spending against your budget to check for blow outs.

I can assist with calculating your borrowing power and stress test this to show you what your repayments will be on higher interest rates. You can check your repayments here to ensure you are at least aware of how much the interest rate rises can affect your home loan: https://moneysmart.gov.au/home-loans/mortgage-calculator

Get in touch for a confidential chat about your situation.