How Are We Helping Borrowers with Their Mortgage Repayments? 3 Strategies
Over the past few months, the nature of the housing market has changed dramatically, where there has been 5 months in a row with rate rises. The common question clients are asking our Property and Finance Experts are, “What do I do now?”. Not only is the cost of living increasing, such as power bills, petrol prices and food, but now there is real pain for our borrowers that their mortgage payments have increased quite substantially.
In a recent interview with our Property and Finance Expert, David Lennox, Dave was asked, “How are you helping borrowers with their mortgage repayments?”.
Vision has a 3-Prong Strategy to help borrowers deal with consistent rising rates. This article outlines these 3 strategies in detail, and helps you understand what you can do to minimise stress during this period.
Strategy 1: What’s “Good”
Strategy Number 1, What’s “Good”, involves Vision reviewing our borrowers’ interest rates at their current lender, to see if we can get them a better rate. Most lenders will offer concessions to existing clients. This is a quick and easy process and can help you reduce your current rate by 0.2% or 0.3%, depending on when you had your last interest rate review.
Strategy 2: What’s “Better”
Some borrowers may not have had a sufficiently good experience in terms of their rate review at their current lender. This introduces Strategy Number 2, What’s “Better”, which involves Vision reviewing the entire market place to see if another lender can provide a big shift in their interest rate profile. In doing this, we aim to save you 0.5% or more by going to a different lender, and some borrowers may even receive a cash rebate.
Strategy 3: What’s “Best”
Strategy Number 3, What’s “Best”, involves Vision going a bit deeper and conducting a thorough analysis on the picture of the client and their loan profile. This involves looking into your loan terms. Are you paying principal and interest on all your loans? Do you have investment loans or owner-occupied loans? Do you have interest only loans? What is your strategy? Are you looking at buying a home in the next 2-3 years? When we look at all of these elements together, including rate reviews, that is the best thing we can do for clients.
When using Strategy Number 3, Vision has helped clients save up to $2,000 a month. Our clients love this strategy the most, as it has the biggest impact on their monthly cash flow.
If you have a couple of properties, or a home loan which you intend to move into an upgraded home whilst keeping your existing, Strategy Number 3 may be suitable for you within the current environment.
What is Dave’s Message to Anyone Who is Concerned about Rising Rates?
Vision takes the time to get to know our clients and always aim to look after them for the long-term. If you’re concerned about rising rates, we want you to not panic and don’t react, but to get in touch with Vision and talk to us, so we can talk through Strategy Number 3 with you. We can do the deep and thorough analysis of your situation and will come up with the best solution for you that will help you in the long-term.