NAB and ANZ economists are now predicting two rate rises next year, while CBA is predicting one rate rise.
It has now been 83 months since the Reserve Bank last increased its cash rate. At some point, Australian borrowers are going to have do something new – work out how they are going to cope when their home loan eats up more of their household budget.
And those borrowers who also have investment properties are also on the nose because regulatory pressure is forcing up investment rates.
Pressure from the Reserve Bank plus the Australian Prudential Regulation Authority may well act as a double-whammy on some household budgets.
However, what few borrowers realise, is that there are some innovative lending policies out there that can significantly reduce loan repayments.
Some lenders, such as AMP, will finance investment loans at the lower owner-occupied rates – so long as the investment loan is secured against an owner-occupied property.
While others, such as Mortgage Mart, have developed innovative products which allow borrowers to structure their loans so that, even in a world of rising interest rates, some of their loans can be as low as two per cent.
Even when interest rates go up, savvy borrowers can pay down their loan quickly. If you would like to pay down your loan earlier, please contact me today to arrange a no-obligations consultation.