You just locked in a fantastic rate for your home loan; you were told it would make sense to fix the entire loan to make even more savings. Yes! I got a great deal…But whom for? You? Or the Bank?
What happens when this fixed term ends? At the end of fixed interest terms things generally go either way, up or down. If the interest rates go down it is happy days. If the interest rates go up it can hammer the budget, increase stress and in some cases it can mean downsizing.
People have short memories when in good times, and as far as borrowing money goes we are definitely experiencing good times. Interest rates are at record lows and lenders are fighting for business. It was not that long ago the best interest rates available were closer to 10% than where they are today, not to mention how hard it was to get a loan…
We all know that big retails stores have products that they don’t make much (if anything) on. These offers are simply to get people in the door. Same goes for banks. Get you in the door and hope for the add-on sales – would you like fries…I mean insurance and a credit card with that?. Even scarier than the add-on sales is the profit they are likely to make when the rates go up! And we don’t have to look back too far for proof of this.
We think you should know that there is more to saving money than just getting good interest rates. We would also like you to know that you can lessen the impact of future interest changes with your home loan and still get great interest deals! Even if you already have a loan!
For more information or smart advice that could save you thousands…give us a call today!
All information provided within this editorial is not to be taken as financial advice specific to any individual or entity. When engaging a LifeFirst (New Zealand) Ltd (LifeFirst) adviser a disclosure statement will be provided before you receive peronalised advice/recommendations. You can request a disclosure statement anytime free of charge.
Life FirstDec 14, 2018
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