Brace for impact… interest rates are set to rise!

Take cover!

With newspaper headlines this week revealing people are falling behind on their mortgages at record rates, the home loan honeymoon could be well and truly over.

And it’s possible things are about to get worse.

Following thirteen straight months of unchanged interest rates by the Reserve Bank of Australia, it appears as though a rate hike could be just around the corner.

And, at the moment, there is no plan for relief in sight. So it’s time to batten down the hatches and brace for impact!

With recent media reports revealing thousands of Australian homeowners are currently embroiled in what’s been dubbed  $550 billion dollars in “liar loans” by investment bank UBS - where people have gotten themselves into risky situations by borrowing more than they can afford to repay – interest rate increases look like leaving a deep impact on up to a third of Australian mortgage paying households. 

According to market watchdog Domain many households could end up in hot water trying to find a way to potentially cover hundreds of dollars extra a month.

The RBA has indicated that a neutral rate for interest rates is around the 3.5% mark. That’s a 2% price rise from the current cash rate of 1.5%!

It might not sound like much on the surface but when the bill comes in the mail many borrowers are going to be in for a rude shock.

So just what would/will a proposed 2% rate increase mean for your repayments?

Let’s do some quick sums and break it down together.  

For instance, someone with a modest $300,000 loan, repayments could jump by $344 a month whilst on a much larger loan of say $1 million, repayments would be $1,146 more expensive.*

As you can see for yourself, it’s quite a considerable upsurge.

So what can you do about it?

With many rates already on the rise, don’t wait around to shop around. As a FiftyUp Club member, see if you can save on your mortgage with our new People Power Loans^ offer.

Under the guidance of a home loan expert, you have the chance to select from over 30 lenders and slash your rate.

Not to mention the exclusive cashback bonus for all members who take advantage of the offer. ^^

Click here for more info or to request a callback

*Based on a 25 year mortgage with monthly repayments and a current interest rate of 3.5%

FiftyUp Club Pty Ltd (ACN 166 905 175) is a licensed Credit Representative (CR 481478) of One Big Switch Pty Ltd (ABN 75 150 963 474) who holds its own Australian Credit Licence (ACL 405918) and is authorised to provide credit services but does not act as a credit provider. In providing credit services to our members FiftyUp Club make no enquiries about an individual’s financial situation, requirements and objectives.

^People Power Loans are provided through Finsure Finance and Insurance Pty Ltd. ABN 72 068 153 926 Australian Credit Licence Number 384704. By providing a means for members to contact Finsure Finance and Insurance directly FiftyUp Club is acting as an intermediary and not providing credit assistance or acting as a credit provider.

^^If you take out a loan with People Power Loans you’ll be eligible to receive a cash back amount of $250 for settled loan amounts under $500,000 and $500 for settled loan amounts over $500,000.

If you take out a home loan as a result of services provided by us, Finsure Finance & Insurance may pay us an ongoing commission of up to 0.20% per annum (plus GST) of the value of any outstanding current loans. FiftyUp Club returns up to $250 of this commission to members in the form of the cash back. Further information can be found in the FiftyUp Club Financial Services Guide available here.