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A LOOK AT HOME OWNERS’ FINANCIAL GOALS

Whilst none of us has a crystal ball that can accurately forecast the future, (well, none that we’ve come across anyway!), We have noticed that there are occasional surveys that provide some insights into the future through identifying what people PLAN to do. So, it was interesting to see some of the results of a new survey by ME Bank which looked at the intentions of Australian home owners.

Whilst current opinion within financial circles seems to be divided as to whether the next move in official interest rate will be up or down, we all know that at some point in the future home owners’ repayments must begin to move upward from their current record lows. Therefore, it was particularly interesting to see how these home owners planned to deal with potential interest rate rises in the future.

According to ME Bank, 62 percent of respondents said they expect their lender to increase mortgage rates this year. More importantly, more than half of home owners, 56 percent in all, said that it would take a rise of a full 1 percent before this might have an ‘adverse impact’ on their finances.

With these thoughts in mind, it was interesting to see that 26 percent of respondents said that they would make paying off their mortgage their main financial goal in 2018.

Some of the other key financial goals identified in the survey included:

  • Saving for holiday, car or another expense other than a home – 23%;
  • Building retirement wealth – 19%; and
  • Buying an investment property – 8%.

Interestingly, none of the respondents mentioned refinancing their home loans to ensure they get a better deal…yet the mortgage is the largest expense that most people have to deal with!

So, here’s a simple tip…if it’s been a while since you last asked an independent mortgage broker to review your home loan, (if, indeed, you have EVER done that!), why not make a call? It doesn’t have to cost you a cent, and even if the broker comes back to you with confirmation that your loan is one of the better deals out there, at least you’ll know you’ve ticked that box before we see any sign of movement from the Reserve Bank.

Of course, if you would like an introduction to a caring, trusted and truly independent mortgage broker, don’t hesitate to give us a call on 1800 600 600 or email the team at loans@chapterfg.com.au

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