What's your plan
Bill Evans took up the Chief Economist role at Westpac in 1991 and has consistently been “getting the big calls right for 30 years”.
When he talks – I listen.
Bill Evans predicts (The Australian Sat 11th Sep 2021) “Interest rates will rise… starting in the first quarter 2023… and going up (in steps) by (only) 1.25%”.
What does that mean for you? Typical home loans are now 2.5% or under and, even allowing for sneaky bank behaviour, Bill Evans is telling us a reasonable worst case that we should plan for is namely a peak interest rate of 4%
So…
My Role is to guide you towards lenders who will agree to reprice your loan back to their new to bank offer (when I reprice your loan every 6 months) This is ABSOLUTELY why we stay variable – so that I can adjust your loan in your favour, every 6 months.
Your Role? This is VERY SIGNIFICANT – take the low rates I can get you BUT… you should be checking what your repayments would be for 4% and start making those payments now. “Fix your repayments, not your rate”.
Alan… will ensure YOUR loan starts the next cycle from the low 2%’s.
You… will ensure you are ALREADY paying your loan AS IF it was 4%.
This important step will build you a buffer. While rates are low – any surplus payment comes straight off your loan balance, and when rates do inevitably rise not only will you have surplus on your loan balance, but your budget will be unaffected. It’s a win win, and secure planning for your future.
How? Go to my loan calculator, (or if you have my app ASK ALAN click to open directly)– fill in your loan balance and remaining loan term and your current rate. My calculator will confirm what you need to know – both your current payment and the one you should use to plan for now and your future.
On another note, my app, ASK ALAN, has had a refresh. If you don’t already have it Click Here to download now.
As always if you would like advice specific to your own personal circumstances, please call or email anytime, it’s what I’m here for.
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