1. Consider refinancing
Chad Hoy Poy, national lending manager at non-bank lender WLTH, said the aim is to refinance as soon as possible.
“Given the expectation of many economists and industry experts for the interest rates to continue rising throughout the year, homeowners should look to refinance as soon as possible,” Mr Hoy Poy told Savings.com.au.
“As interest rates increase, the ability to borrow decreases as loan repayments increase inline with increasing interest rates and serviceability buffers used by lenders.”
Mr Hoy Poy also urged borrowers to look out for exit fees and potential break fees when refinancing, as well as the comparison rate which gives an indication of the fees on the new home loan.
2. Look beyond cashback deals and other offers
Mr Hoy Poy said cashback offers are worth a look but “should not be at the expense of good service or a lower interest rate”.
“Check the fine print and understand what the home loan entails. An instant lump sum of money upfront may be enticing, but if it will cost more in the long run, then it may not be a good deal,” he said.
More tips and tricks can be found at the full article at Savings.com.au
