What’s in your best interest?

Written by Kodie Axelsen

I wanted to invite you into the world of finance broking and how this industry operates at the present time.

It is evident in the recent few years that the media and fear mongering are quite effective in swaying people’s perceptions and ideas of the world and where it is heading.

They are also quite persuasive when it comes to peoples decision making. Earlier this year we saw banks hiking their interest rates and the media generating a lot of fear around inflation.

The rate rises on fixed rate home loans began prior to the RBA increasing the cash rate which showed the banks where meaning business. Out of fear of the unknown many people were rushing to fix their home loans in the 5’s when we were still achieving variable interest rates in the 2’s. To the average household home loan this made a difference on average of $80/week extra that they were signing up to pay.

Although variable rates are subject to interest rate increases they are still significantly cheaper than the advertised fixed rates at this time. Each individual circumstance and risk rating is very different so you cannot use a blanket rule for all so I do urge each home owner to seek unbiased advice.

By unbiased I mean contact a broker like myself to review your financial situation, your goals and your risk rating and present options to you that align with the future you’re working towards. A lack of knowledge and understanding can lead you to be locked into a fixed rate for years that can be close to double what you could be paying.

Moral to the story is ask the right people the right questions and make sure you are putting yourself and your family in the best financial position. Don’t act out of fear when there is no need to rush into making decisions you’re unsure of making. You do have time so please never hesitate to ask a question. It could save you a lot of your hard earned money and a lot of stress.