Australian home owners are predicted to spend the remainder of 2010 forking out 50% of their income on debt repayments.
A recent study shows that more than 40% of Aussies spend about half of their monthly income on repaying home loans, credit cards and/or personal loans. This survey also indicates that many Australians have little cash left over to play with at the end of the month – which only goes to show that every time the Reserve Bank of Australian (RBA) and major banks increase interest rates, a majority of home owners struggle further.
This week (5th April 2010)we saw the RBA lift official interest rates by 0.25 percentage points. The move takes the official cash rate to 4.25%, and will move most major banks’ standard variable mortgage rates above 7%.
With interest rates expected to rise further this year, we urge home owners to explore their financial options now, while the opportunities are greater. A popular debt consolidation technique is to refinance your home loan.
Home Owners Should Refinance
Refinancing your home loan works best when interest rates are low. Some advantages of refinancing a home loan may include reducing your monthly repayment amount; gaining access to extra funds through the equity built up in your property; changing from a variable rate to a fixed rate; and locking into a lower interest rate.
Even though interest rates have increased, you are still able to get your hands on some lower rates. Here at the Australian Lending Centre we have already done the research for you – the interest rates we offer are extremely competitive and are some of the lowest in the market place.
To find out how we may be able to assist you, before interest rates increase again, call us today on 1300 138 188 or simply fill in our quick enquiry form and a debt consultant will contact you shortly.