It should come as no surprise to most that the RBA has announced an increase to the cash rate by 25 basis points, taking the official rate to 0.35%.  Lenders across the board have responded by passing on this rise and it’s safe to assume that there will be more in the foreseeable future.

Apathy or inaction has never proven to be an effective financial management strategy so to that end, we highly recommend getting on the front foot and mitigate any rate increases by looking at ways to get the most out of your mortgage facilities along with auditing your  commitments to be certain you are not paying more than necessary.

So, where to start?

Refinance to a cheaper lender

A quick check in with your mortgage broker can determine if potentially cheaper options are available at another lender. Having a suite of over 40 financial institutions available to us means we have many options. As the lending market is constantly changing, what may have been market leading a year or two ago may longer not be the case. Add to this the fact that many banks still have attractive refinance rebates available, moving your lending could potentially put you in a stronger position.

Switch your product with your existing lender

A full refinance may not be necessary. Your mortgage broker may be able to advise you of alternative loan facilities with your current bank that may be cheaper and save you money. Whether it be fixing your loan, splitting your loan, or moving in or out of a package, sometimes an internal refinance is not only a quick and efficient way to make your mortgage products work better for you, but it is considerably less time consuming and straightforward than moving to a new bank.

Obtain additional discounts with your lender

Your mortgage broker has the capacity to approach your existing bank to request an additional rate discount based on your loyalty as a customer and of course to retain your business. With many banks you can have you newly minted lower rate applied to your loans almost instantaneously. Make sure you avail yourself of this service regularly to stay ahead of the game.

Consolidate and streamline your debts

If you are the proud owner of multiple facilities such as car loans, personal loans, and credit cards it may be prudent to investigate rolling them all into one easy repayment by consolidating them into your home loan. As the interest charges on unsecured debts are notably higher that mortgage loans, this may make a significant difference to your overall bottom line. Ask your mortgage broker to order a valuation on your property to see if your equity position will allow you to streamline your outgoings and save.

Audit your finances

If you have squeezed all you can out of your home loan but are keen to shave more of your outgoings, then there are other areas you can focus on:

• Create a budget and review your spending habits.
• Trim expenditure such as unnecessary streaming services or memberships that are not being used.
• Review your insurance premiums and switch providers.
• Investigate as to whether your lender offers multiple offset accounts and manage your money smarter.
• Check in with your financial planner or acquire one if you have no done so already.

Some mortgage holders may be impacted more than others, but everyone can benefit from reviewing their finances and look at ways to manage their money better. Top of your list should be a check in with your Blackburne Mortgage broker to ensure no financial stone is left unturned and you are prepared for whatever may be on the banking horizon.