Finding value for your dollar For the first time in a long time, the cost of living in Australia is a hot topic. Reserve Bank of Australia Governor Phillip Lowe made note of this in a recent release, remarking that “after many years in which inflation was something that most people didn’t think too much about, it is now a topic of everyday conversation.”
Prime time for refinancing One area that consumers are seeking to secure more bang for their buck is on their home loan. This is a trend that has been confirmed by PEXA Insights’ Refinance Index, an online metric which quantifies market performance.
And unfortunately, the outlook ahead does not appear to be bright, with Treasurer Jim Chalmers forecasting The index reached a record high at the testing times in coming months, ahead start of July, as volumes remain strong of expected further rises in inflation. after a bumper FY22. The impact on consumers The effects are being felt nationwide – with the current economic climate now forcing consumers to evaluate their day-to-day expenditure, explains iSelect spokesperson Sophie Ryan. “Aussies are experiencing price hikes across the board, from groceries and petrol to electricity prices and interest rates. “Every dollar counts in these tough times, which is why it’s so important to make sure you’re not paying more than you need to when it comes to household bills and expenses.”
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And as Ryan notes, “with interest rates increasing, the home loan you previously signed up for may not be the best fit for you today. There could be more competitive interest rates out there, which is why now could be a good time to shop around and consider refinancing. “You may be able to find a lower premium with a different insurer or a home loan with lower repayments. “Lendi data shows that homeowners are penalized with a ‘loyalty tax’ by remaining with their lender. By considering an alternative lender, Lendi data shows existing Owner
