As widely expected, the RBA has increased interest rates as of today, Tuesday the 7th of February.
Appearing before a Senate committee looking at cost of living, the head of the economic analysis department at the RBA, Marion Kohler, estimated that 800,000 loans will revert from a very low fixed rate to a much higher rate.
So if you are one of those 800,000 people rolling out of a fixed rate in 2023 now is not the
time to put your head in the sand. There are ways you can be proactive with your preparations ahead of these changes.
At TAG we are advising our clients to take action early. Here are some of the strategies we are doing on their behalf:
- Contact the bank to confirm the expiration of the fixed term.
- Our clients are empowering us to negotiate on a competitive ‘revert’ rate on their behalf. This is the interest rate that you will automatically roll onto once your fixed rate expires. It is often much higher than what is available in the market.
- Once we know what the expected revert rate is likely to be we have the client change their regular repayment to the anticipated repayment. We do this so that our clients are able to change their habits and amend lifestyle choices before they are forced to by their contractual obligation by the bank.
You are now prepared for the change and when the increased repayment is due you will be well prepared.
If you believe Tag can assist you in preparation of your fixed rate expiry or any other matter please contact us for a confidential conversation.
Please don’t put it off until it’s too late!
