The RBA has increased interest rates by 350 basis points (3.5%) despite its own minutes in February 2021 stating, “Members affirmed that the cash rate would be maintained at 10 basis points… will not increase the cash rate… The Board does not expect these conditions to be met until 2024 at the earliest.”.
Many households are yet to feel the full force of this blunt monetary policy stick as they have remained on a fixed interest rate.
Unbelievably, the interest rate you will be asked to pay once your fixed period ends may be even more than 3.5% higher than what it was. Many people negotiating a fixed rate in 2021 would have received an interest rate below 2%. The rate mortgages revert to once the fixed period expires could be far higher than 5.5%. To make matters worse, refinancing is more difficult, much more difficult.
In order to qualify for the best rate you need all the help you can get. Our Leg Up can help you gain access to the cheaper interest rates applied to low loan to valuation ratio (LVR) loans.