At a time of record low interest rates you would expect the news for borrowers to be all good!
Instead, lenders and regulators tend to become very nervous about how borrowers will manage their debt when interest rates eventually rise, so they take steps to lessen the impact.
Bank lending rules are not a set and forget. Lenders introduce changes over time largely due to funding pressures. In addition, APRA (Australian Prudential Regulation Authority) has continued to exert pressure on lenders in an effort to slow down lending in a low interest rate environment.
With constantly shifting goalposts there has possibly never been a more important time to regularly review your home loan and take steps to protect yourself from any future mortgage stress.
What are the signs of potential mortgage stress?
The reasons that more than 50% of Australian home owners NOW use mortgage brokers are:
These are interesting times and although we are currently in a low interest rate environment, that doesn’t stop the landscape from changing.
You are best to catch up with us at least every 18 months – preferably every 12 months. Even just a 10 minute phone call to the office may help relieve the stress of not knowing whether you should be taking action.
It is much easier for us to help you BEFORE mortgage stress sets in. Please do not leave it until it’s too late for us to review your finance.
If you have friends or family, please forward this article on to them as well. We want to help everyone else you know who has a mortgage to be informed.