Rising funding costs are expected to force Australia’s lenders to raise their home loan interest rates this year. Mortgage Choice in Perth’s marketing manager, Ruth Hatherley, said some of Australia’s lenders have already been forced to lift their rates because of rising funding costs, and more rate hikes could be just around the corner.
“I think we can and should expect the banks to lift their home loan rates this year. Unfortunately, there is no uniformity in the way lenders move, so some will undoubtedly raise their rates by more than others,” she said.
With different lenders raising their rates by different amounts, Ms Hatherley said borrowers should take the time to review their mortgage to make sure they are still in the best product for their needs.
“By shopping around for a better deal, borrowers may be able to save thousands of dollars in interest charges and potentially shorten the lifespan of their loan,” she said.
And, with property prices stagnating in Western Australia, Ms Hatherley said borrowers may find that now is not only a good time to refinance into a better product, but potentially upgrade into a better home.
“The key is to speak to a professional. A mortgage broker can help borrowers with all of their home loan needs, whether that involves refinancing, or potentially securing a sharper rate with their current lender.”
Call the team of home loan experts at Mortgage Choice in Perth today on 9485 0090