Inflation Interview with an Expert
Once again, Channel 7 viewers were treated on Sunday to a new episode of The Agency’s exciting new series, Home in WA.
If you missed Sunday’s episode, you’re in luck! We’ve got the video and a quick synopsis below.
In this episode, host Jon Williams addresses a topic that's on all of our minds at the moment: inflation. He brings in a mortgage expert for an enlightening Q&A that will shed some light on the current situation.
And don’t forget to catch future episodes at 2pm every Sunday on Channel 7, just after Better Homes & Gardens, and before the footy!
Rising interest rates: interview with a mortgage broker
As we all know by now, Australia’s current rise in inflation has prompted the Reserve Bank to lift interest rates. While it’s only a small rise, most economists agree that more increases may be on the horizon.
But to put it into context, this increase follows a period of incredibly low rates, meaning it’s not such a dramatic change for most people. Nevertheless, this is still a great opportunity to reassess your situation by understanding how any further increases may impact you and by evaluating the way your loans are set up.
To help you learn more, host Jon Williams caught up with Stacey Dragicevich from Mortgage and Finance Solutions Australia for an insightful Q&A.
Jon: Stacy, there's a fair bit happening in the lending space at the moment. What does it all mean for people with existing loans?
Stacey: So we've seen the cash rate rise with the RBA. And if you're on a variable rate, you may have seen your repayments increase. Also, if you're on a fixed rate loan, and you're possibly coming out of that period, your payments may increase because the standard variable rate has increased. So if you're an existing mortgage holder, it's a really good time to speak to a mortgage broker and make sure that you're on the best rate for you.
Jon: So for those people who are looking to get into the market and buy a house, how can we best prepare?
Stacey: The best way to be prepared in a market with interest rate increases is to get a pre-approval. Set your budget, make sure that you've understood all the costs including stamp duty, know what you can purchase, and then have a look at possible increases in the interest rate and make sure that you're still comfortable affording those. But your mortgage broker can help you through that whole process.
Regardless of interest rates, it’s always a good idea to get an independent financial health check. To find out more about Mortgage and Finance Solutions Australia, or to speak with one of their expert brokers, visit mfsa.com.au.