As variable rates continue to increase many clients are asking about fixing to protect from continuing rate rises. Sorry to say, that horse has bolted. As an example, 3-year fixed rates are now quoted at major banks as much as 3% higher than variable rates. No one can accurately predict the future, but general opinion is that you will end up paying less interest over that 3-year period by being in the lowest available variable rate loan rather than fixing.

The new financial year is nearly upon us - are you setting a New Year resolution? Now is a perfect time to review your overall financial position, how it has improved / deteriorated over the last 12 months, and how you want it to look in 12 months’ time. This year that is even more relevant.

Interest rates are moving up – but it is not time to panic yet!

As had been expected and predicted, in May the Reserve Bank of Australia (RBA) joined central banks in the US, UK, Europe and Asia and moved our nation into a rising interest rate cycle. Given the last time rates had been increased in Australia was November 2010, this is unfamiliar territory for many borrowers.

Top of mind now is how high will rates go?

With a general expectation interest rates (as set by the Reserve Bank) will rise, many borrowers may be considering the option of fixing all, or part, of their home loan. However, there are various aspects to consider prior to making that decision.

The Morrison Government is expanding the Home Guarantee Scheme to make available up to 50,000 places each year. This includes a new Regional Home Guarantee open to non-first home buyers, enabling even more Australians to achieve their aspirations of owning a home.

The housing market’s strong momentum has carried over into 2022, with more listings, more sales and further growth in property prices.

The number of new property listings on realestate.com.au in February was 13.5% higher than a year ago, and while buyers had more choice, demand per listing still remains around 10% higher than the same time last year.

Time is a funny thing. It can move so fast, or so slow. I remember in my younger days a new year seemed to mean so much more than being a somewhat arbitrary calendar date. As I get older the years seem to roll into each other and January 1st becomes just a date.

But this year feels like it might be different? After 2 years of uncertainty and virus-imposed disruption, perhaps a return to some stability: Life in a ‘new normal’. It has been difficult to set plans. Holidays booked... then cancelled (along with going to dinner, the football, the theatre, and any number of simple pleasures, normally taken for granted). Of course, we all saw the side benefit: Less money spent is more money saved. This has certainly assisted those wanting to buy property.

Read more in our February newsletter here

Merry Christmas and be happy • Got to keep laughing • Some perspective about the market • What makes us happy?

This month’s festive season newsletter can be read here

Michael Jordan, the first billionaire basketball player, failed to make his high school varsity basketball team in his sophomore year and was sent down to his junior varsity team instead.

J.K. Rowling failed 12 times to get her book Harry Potter published.

Looking for ways to pay off your mortgage in record time? Whether you’re a seasoned investor or buying your first home, an offset loan can help you reduce interest payments, save on tax and pay your mortgage off years ahead of schedule.

Not all heroes wear capes • Everyone needs to have a laugh • An easier way to pay off your mortgage fast • Jordan, Rowling and Sanders all have something in common

We would like to wish a very happy retirement to Felicity who has been part of our team for the past ten years.

We also let you know about new government housing grants in the August edition of the Integrity Finance Newsletter.

From 1st July 2021, 30,000 new places were made available under the Australian Government’s First Home Loan Deposit Scheme, the New Home Guarantee, and the Family Home Guarantee.

Increased life expectancy is a cause for celebration, however with those extra years of life (and an increasing pension eligibility age) come increased financial pressures.

Find out whether a reverse mortgage could be a good option for your situation.

Integrity Finance celebrates 15 years in business!

To catch up with this and more news from Integrity Finance Australia, take a look here