The festive season is upon us, but for some, the mood isn’t as joyful as it should be. Since May 2022, Australians have seen eight consecutive increases in cash rates. Mortgage holders and potential homeowners are losing the joy of Christmas as they wonder if getting a mortgage or refinancing is still possible.
You can get a Christmas reward from your lender.
Santa Claus isn’t alone in delivering gifts this Christmas. Here are four different ways to get a gift from your lender for Christmas:
- 1. Ask for a rate reduction. You might find that your lender is willing to work with you to keep you as a client.
- 2. Switch to another lender. You may want to consider switching lenders if you find that your current home loan rates are not competitive. Refinancing can help you make your home loan work for you.
- 3. Refinance or get a new loan with cashback. Some lenders offer up to $6,000 in cashback when these limited-time offers are available.
- 4. Talk to your mortgage broker immediately if you are concerned that Christmas spending could put you at risk of stress on your mortgage or default. There are measures in place to make sure your payments are manageable.
Celebrate Christmas Without Breaking The Bank
When you apply for a mortgage or refinance your home, the lender will evaluate your financial status and request recent bank statements. Your credit card limits will be closely monitored, as well as your use of services such as buy now pay later and the cost of Christmas dinners or presents.
You could be denied a loan if you have been frivolous with your holiday spending.
Take control of your finances at Christmas with these five tips:
- 1. Organise a potluck Christmas instead of doing everything alone. Enjoy dishes from other cultures while discovering which loved ones are master cooks.
- 2. You can find Christmas gifts within your budget. Look for second-hand or pre-loved items, or visit charity shops to find a unique gift at a great price.
- 3. List all of your expenses for the holidays and divide them into essentials and non-essentials. Find cheaper alternatives to your needs, and if you can, eliminate your non-essential expenses.
- 4. Budgeting can help you keep track of all your holiday spending. Please stick to your budget once you have created it.
- 5. Avoid putting your Christmas expenses on credit. Avoid using credit cards or services that allow you to pay now and later. If you are unable to repay these options on time, they can damage your credit rating and affect your borrowing power.
Bringing The Christmas Cheer
In 2023, rising interest rates and rental costs are expected to consume a large portion of your earnings. The buffer that Australians saved during the pandemic may be exhausted by the holiday season because of inflation and rising living costs.
