With the start of banks repricing new business and their back books to manage their cost of funds, it is important to understand the cause and what you can do to minimize your risk.
Whether we like it or not, banks need to make profits to ensure they can be a sustainable financing option for consumers, businesses and corporations both domestically and globally. Whilst we are seeing a shift in the necessity of the big four, they are still a solution for thousands of people across Australia.
What does this mean to the average Australian that has a loan with one of these banks? Invariably your loan repayments will go up. Yes, there are a lot of consumers that have paid their loans in advance and have maximized the low cost environment to secure redraw or build their offset account, but conversely there are hundreds who haven’t.
Understand your loans
The question is now. What can consumers do to manage their cash flows and safeguard their assets? Get advice. Most clients we speak with don’t know what their current interest rates are on their loans, but more often than not will know exactly what their payments are.
The fundamental problem with most consumers is that they either don’t have time or can’t be bothered to review their most important assets. It might be too hard or they simply don’t know where to start. While the first step of refinancing is often the hardest, the process can be made easy with the right partner.
There are always options available to consumers whether it be restructuring loans, changing to fixed rates or consolidating debts using equity, all of these can have a positive impact on your disposable income.
Speak with a Glass broker today and find out what you can do to protect your assets.