How best to Plan Ahead…

With the Reserve Bank likely lifting rates later today – how best to plan ahead.

I asked two clients recently if they were interested in hearing why rates are being lifted – and their answer could not have been clearer … “no – we read your emails because you tell us how to plan”

The so-called experts (and even Bill Evans from Westpac has changed his view a few times recently) seem divided but also in agreement on between 1 and 3 rates rises – including today’s.

If today’s turns out to be the last – then we need to plan on a peak rate (for you personally) of 5.5%.

If there are two more after today – then we need to modify the peak rate (for you personally) to 6.0%.

To err on the conservative side – I have already adjusted my loan calculator (for peak rate) to 6%.

Enter your original loan amount** and original loan term** to work out what you need to plan for.

Let me know if you need help with these two numbers**.

On two other notes:

• many people are asking me about weekly or fortnightly repayments to pay their loan off more quickly – Read here for my advice (and it is not what almost everyone assumes)
• many buyers who talk to me are “holding off until the crash” (once again – Read here for what I think on that matter)

and if you would like to hear the “why” about rates …. Read here.

As always if you’d like advice tailored to your own personal circumstances please call or email me anytime… It’s what I’m here for.

Ask Alan – Mortgage Broking with a difference.