Jun 6, 2023
With the Reserve Bank (RBA) announcing its policy decision for June, borrowers are bracing for another rocky month marked with more mortgage pain.
In this episode, Smart Property
Investment’s Phil Tarrant and Finni Mortgages’ chief executive,
Paul Glossop, talk about the central bank’s move to take another
swipe at inflation, how mortgage holders are being caught in the
crossfire and why they think borrowers are not completely “out of
the woods” just yet.
While the duo
acknowledge it will take a longer time for the rate rise cycle to
reach its last stop, they explore the different ways borrowers can
find reprieve amid the rising mortgage squeeze — including a
modified serviceability assessment rate offered to those who have a
good track record among lenders.
Lastly, they advise property owners to focus on
“longevity”, explain why one’s borrowing capacity is “just one
aspect” of the equation, and discuss the importance of “stress
testing” your personal cash flow.