Interest rate movements – up, down, or sideways…
There is a lot of discussion about how interest rates will pan out in 2024, with households starting to ‘feel the pinch’ with the RBA’s increases to the official cash rate over the past 18-20 months which is on top of our general living expenses such as groceries, insurance, fuel, energy going up at sometimes what feels like every month.
A number of economists are forecasting a flat line throughout 2024, with a hint of reductions coming through towards the last quarter of the year. How you want to take this is up to you, as remembering these same economists and to some point the previous RBA Governor hinted only 2 years ago there would not be any rate rises until 2024…and look where we are now….
A new year can bring a renewed energy to ‘shop around’ to see just how well your bank may be looking after you when it comes to your home loan or investment loan package. We often speak to clients and newly introduced people at Milestone and when they feel they are going OK with home loan rates at 6.4% – 6.9%, and when we review this and come up with options that could 6.04%-6.15% – it may mean hundreds or even thousands of dollars’ worth of savings in the short term which then amounts to a lot over the life of the loan.
If it’s been a while since you last reviewed your mortgage, then why not make the 1st quarter of 2024 a ‘to do list’ item and reach out to info@milestonelending.com.au for a quick review and chat to see if you are able to save some dollars this year. Remember, every extra dollar you give the bank is reported in their multibillion-dollar profit announcements each year. If you existing lender is not looking after you, then it may be time to move to a lender who will. Your friendly team at Milestone is ready and willing to help you get the best package for your home and investment loan needs today!
Written by
Aaron McInnes
Financial Planner | Mortgage Broker
Grad.DipFS(FP), DipFS(FMBM), SMSF Adviser