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Here we are 2024- The year that interest rates will go UP! Oh, hang on a second!

Posted By Jason Hare  
24/01/2024
13:59 PM

This is for the 30% of Australians that are paying the price for inflation that they did not cause or create.

Thank you for your sacrifice. The other 60% of Australia should be grateful!

As mortgage holders, you are the 30% of Australia that are affected the most by interest rate rises.  Yes, this blunt tool used by central banks around the world to bring inflation under control only affects 30% of us. 30% already own their home outright and 30% rent so that leaves the poor mortgage holder to do all the grunt work for the rest of Australia.

After 17 rate increases, we all need a breather. As a finance broker I speak to Australians every day that are doing it hard. The cost of living for many people has taken a giant leap forward that many have struggled to keep up with.

Knowing that savings on your home loan repayments is the number one way that people can reduce their budget and help ease the pain of inflation its hard for me to watch. Particularly if clients are locked into their current bank due to their borrowing capacity going down thanks to interest rates or their financial situation has deteriorated.

When the RBA governor states that rates most likely won’t go up until 2024 then we believe him. Hundred of thousands of people are now wishing they were more sceptical.

So, what will 2024 bring? That is the question on every homeowner’s mind. After the thumping we have had for the last two years, Australians with a mortgage are really hoping for a reprieve by the RBA.

 

Looking at what the economic analysts and forecasters are saying there may be a rate decrease later in the year, potentially August or September. Im sure this will be a relief, but it can’t come soon enough. Just having no new rate increases on the horizon is a big relief so fingers crossed our inflation for December and January does not match the United States and bounce back up.

We have done a great job as a country in getting our inflation down to 4.3% P/A. Considering the supply issues we still face, the price gouging of our biggest supermarkets and airlines and the chaos around the world it really is incredible that we have smashed inflation down to its current level.

 

At Open Plan Finance we have a goal of being the best brokerage in Newcastle and the Lake Macquarie area.

We don’t throw that term around lightly. We truly believe we are the

Best Brokerage in Newcastle and the Lake Macquarie area because:

·        * Our split process system that allows our brokers to be more available to our clients more of the time

·       *  Our track record of finding innovative ways to ensure our clients objectives are met

·       *  Our gold standard data security of all documents and emails

·        * Our new software that allows us to assess over 30 different lenders rates, borrowing capacity and policies at the same time

·        * Our bestselling book “The Equity Advantage” that is a template for property investors on how to scale and use equity correctly

·        * Our local connections to other amazing businesses in the area, from accountants, financial advisors, property managers and sales agents

·        * Proud sponsors of local sports teams

 

So from the team at Open Plan Finance, we would like to say again to all mortgage holders.

 

Thank you for your sacrifice.