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The Upcoming Fixed Rate Cliff: What is it and how can a mortgage broker help?


Fixed Rate Cliff

If you're a homeowner in Australia, you may have heard about the upcoming "fixed rate cliff" that's set to hit the mortgage market in the coming months. This refers a period of time where many Australians are due to have fixed-rate home loans expire, which means that borrowers will revert to their current lenders standard variable rate and therefore have their mortgage repayments increase significantly overnight.


To help combat this and to try to secure a better overall home loan rate, homeowners will then have to either switch to a new variable rate product or find a new fixed-rate loan. This can be a daunting prospect for many homeowners, but there are ways to navigate this situation and ensure you are getting the best possible home loan product for your individual circumstances. Many Australians are choosing to do this with the help of an expert mortgage broker - in fact, industry body MFAA have reported that over two-thirds of home loans are now written by mortgage brokers as opposed to clients choosing to go direct to their banks.


So, the question needs to be asked - why are so many Australians choosing mortgage brokers over a bank and how can a mortgage broker like Neptune Finance Australia help you navigate this situation and deliver a favourable outcome? Here are a few key points to consider:


1. Brokers have access to a wide range of lenders: A mortgage broker has access to a wide range of lenders and loan products, which means that they can help you find the best loan for your needs. As we work for you not the banks, we always operate with your best interests at heart.

2. Brokers can offer expert insights: As mortgage brokers we can provide expert advice on the different types of loans available, as well as the pros and cons of each option. This can help you make an informed decision about which loan is right for you.


3. Using a broker can be time-saving: Engaging a mortgage broker can save you time and hassle, as we can do the legwork for you and help you navigate the complex mortgage market.

4. Brokers can offer ongoing support: A mortgage broker can provide ongoing support throughout the life of your loan, helping you to manage your repayments and make any necessary changes to your loan if required. In fact, at Neptune Finance Australia we choose to conduct annual reviews with all our clients to assess the continued suitability of their home loan.


In summary, the upcoming fixed rate cliff in Australia can be a challenging situation for homeowners, but there are ways to navigate it and secure a better rate with the help of a mortgage broker. The team at Neptune Finance Australia are more than happy to have an obligation free chat to any homeowners who are due to come off their fixed rates in the coming months and to try and help with softening the blow of any changes to their mortgage situation.


As Always - the information in this blog post is general only and shouldn't be constituted as advice. Your complete financial situation will need to be assessed before acceptance of any proposal or product.


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