Why does this matter for you?
The gap between the fixed and floating rates are increasing and if you've got a floating rate this means you're paying considerably more in interest, which ultimately means you'll be paying off your mortgage for longer (and making the banks more money!)
Who does this affect?
If you've got a home loan floating then this is definitely having an effect on you.
If your lending is $250,000 and you're paying 2% higher (difference between floating and 1 year fixed) then that's costing you an extra $5000 per year. That's a difference of 9 years in paying your mortgage off (between a 30 year term and 21 year term)
Perhaps you've had a fixed rate expire and you haven't re-fixed because you've seen rates dropping... well the floating rate hasn't been dropping so you're paying a lot more then you could be.
Maybe you've got a revolving credit that has a large balance owing? There's not point paying a floating rate on this if you're not going to repay it relatively quickly. You could restructure your lending to make your Revolving Credit smaller and fix the remainder to make it cheaper.
What can you do about it?
Of course, we can put a structure in place to save you money. The structure that's right for you, and we can do it free of charge.
We can negotiate the best fixed rates with your current bank and simply re-fix your lending.
Or we could advise on a structure that better suits you so you could repay your mortgage even faster.
It's a fast, easy and painless process. Simply click the "Contact us" button and we can have you saving money on your mortgage within days.
We look forward to shaving years off your mortgage and putting more money in your back pocket.
Adam, Claire, Greg and the My Mortgage Team