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Yesterday’s rate hike could increase the level of refinancing activity, as more consumers shop around for a better loan, according to the MFAA.
MFAA chief executive officer Phil Naylor said changes to the official cash rate can present an opportunity for borrowers to get a better deal.
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“There are a whole range of factors above and beyond the interest rate which can determine whether a home loan suits your circumstances,” Mr Naylor said.
“And consumers will be thinking that what was the most suitable mortgage 12 months ago is not necessarily the most suitable mortgage now.”
Mortgage Choice’s senior corporate affairs manager Kristy Sheppard agreed, encouraging struggling borrowers to take action.
“Whether we like it or not, rising rates will be a fact of life this year,” Ms Sheppard said.
“If you’re going to find making higher repayments difficult, take the situation into your own hands and take action now. For example, borrowers could look into moving to a different loan product and/or lender to reduce mortgage costs, but only if the benefits outweigh the fees involved.”
