๐ฃ๐ฎ๐ฟ๐น๐ถ๐ฎ๐บ๐ฒ๐ป๐๐ฎ๐ฟ๐ ๐๐ป๐พ๐๐ถ๐ฟ๐ ๐๐ฎ๐น๐น๐ ๐ณ๐ผ๐ฟ ๐๐ผ๐บ๐ฒ ๐๐ผ๐ฎ๐ป๐ ๐ฅ๐ฒ๐ณ๐ผ๐ฟ๐บ
An inquiry by the House of Representatives Standing Committee on Economics has called for the introduction of โtracker mortgagesโ, whose interest rates would automatically move up or down in line with changes to the cash rate.
โOne of the advantages of tracker mortgages is that they reduce the likelihood of disengaged consumers drifting away from the best available rate,โ according to the inquiry's report.
Another advantage is that they would introduce transparency to the way lenders set their interest rates.
The inquiry found โthat people with tracker mortgages are at less risk of paying an interest rate above the best available rate at the time, even if they do not pay attention to the marketโ.
As the graph shows, owner-occupiers with outstanding variable-rate home loans (the top line) are, on average, charged higher interest rates than people taking out new loans (the bottom line).
The inquiry recommended that the federal government cooperate with the banking sector to run a tracker mortgage pilot program.
Subiaco finance brokers are here to help
Interest rate rises are here, but you donโt have to fear with the right broker on your side.
The team at Sonam Capital are here to empower you through financial knowledge.
Weโll take the time to get to know you and your unique situation and speak in a
language you can understand, with strategies you can implement for the best possible outcomes.
Nick and Wayne at Sonam Capital are your Subiaco finance specialists.
