The news is abuzz with constant information right now on interest rates cuts, economic slumps and inflation threats. It’s a lot to wonder about and making investment decisions remain as confusing as ever.
The property market got another boost with the lowest home loan rate in the market only weeks ago, dropping to 1.69 per cent. Lender Greater Bank announced the new market-leading rate of 1.69 per cent following a cut of 0.2 per cent to its one-year fixed rate for owner-occupiers paying principal and interest. At the same time, this led homeowners to rethink their opportunities to fix all or at least part of their loan.
Experts predict interest rates will remain at rock bottom for the next three years. However, fixed rates are likely to rise before variable rates do as the longer-term bond market starts to anticipate monetary tightening a few years ahead.
The Reserve Bank of Australia governor Philip Lowe recently told the media that there would be no official rate rises until at least 2024. Still, the markets are betting it will happen in one or two years – or earlier. Some experts are even indicating that the interest-rate cycle may turn before Christmas this year.
New research shows 91 per cent of lenders on Canstar allow borrowers to split their loan. The analysis reveals that some lenders allow borrowers to split their loan up to 10 times. The cost of setting up a split loan is about $213 on average.
How can an accountant help you with your mortgage decisions?
Professional Accounting Advice
A professional accountant can give you trusted advice on your specific situation. They can do an audit, review your circumstances, and better understand your choices on loans and decisions on financing options. They will also make sure you are protected and understand all the banking terminology and fee structure.
Giving you the correct information
Without experience in the accounting or banking sectors, it can be quite overwhelming to know everything about interest rates and the financial markets. Having advice with the correct information at hand can give you the confidence to know when to lock in interest rates, what institutions and which applications are right for you.
Assistance with Paperwork
It can be challenging to understand the paperwork that comes with any financial decision. In particular, an accountant can help you understand all mortgage application documents and assist you with a loan application checklist. From credit and reference checks through to the verification of your annual income, an accountant will help you correctly set out your personal information, employment documentation and everything else needed to complete your mortgage application.
For more information on how we can help you with your finances and mortgage decisions, get in touch with one of our friendly team members at Total Accounting Partners on the Sunshine Coast or in Redcliffe today!