Welcome to 2019! A year that’s promising to be just as interesting as the last, and hopefully a stronger year for all.

Only 2 weeks into the year and already 2 lenders have increased their home loan rates (Bank of Queensland & Virgin Money), both citing increased cost of funds as the reason for hiking their rates.

It is likely that others will follow with the same reasoning. However, the reality is that the lending landscape, whilst fluid and continually changing, is still quite competitive. Therefore, if you feel that you could probably do better than the arrangement you currently have, it is worth a discussion.

An important point I wish to make however, is that it is becoming increasingly important to align your needs and strategic requirements with your want for a cheaper interest rate. Sometimes, the cheapest loan is not the best loan for you, as it may hinder your overall strategy if it does not provide for the flexibility or features you may require.

Finance is a tool that assists you in achieving a particular goal. As such, it must be appropriate to the task at hand. For example, if your goal is to climb Mt Everest, you’re not going to do so in a pair of thongs, even if they are cheaper than hiking boots – you get my point.

Anyhow, with a federal election approaching, property prices on the slide and further credit tightening threatened (in anticipation of the Financial Services Royal Commission’s findings due to be handed down on 1st February 2019), you’d be wise to stay tuned for further updates and please feel free to share our insights with your friends.

Best wishes for a great 2019,

Luay Khreish | 1300 00 78 78 | info@aviatoradvisory.com.au

Disclaimer: The information provided herein is for general information purposes only and does not constitute specific advice. It should not be relied upon for the purposes of entering into any legal or financial commitments. Specific advice should be obtained from a suitably qualified professional before adopting any investment/financial strategy.