Why it’s the right time to give your finances a check-up

Why It’s the Right Time to Give Your Finances a Check-Up

Mark Stevenson, Managing Director at Bell Partners Finance (now Evolve Lending & Finance) wrote for The Western Weekender in March 2023, urging mortgage holders and borrowers to treat their finances with the same regular care they would apply to maintaining a car or a home.

With cost-of-living pressures intensifying and the RBA’s rate hiking cycle well underway, the case for reviewing your financial position was stronger than it had been in years. Consumer spending data showed a rise of just 0.3 per cent through the final months of 2022, the smallest increase since the COVID lockdowns of 2021, a clear signal that rate rises were having a real impact on household behaviour and sentiment.

Looking ahead, Mark flagged further potential pain on multiple fronts: additional rate hikes, weakening economic conditions, a likely rise in unemployment, and the so-called fixed-rate cliff, with around 800,000 home loans set to roll off low fixed terms and onto significantly higher variable rates. For borrowers already on variable rates, the message was the same: do not assume your current deal is the best available.

Refinancing was highlighted as one of the most effective tools available to borrowers in this environment. It could reduce monthly repayments, adjust loan terms, unlock home equity for renovations or other purposes, or consolidate multiple debts into a single, lower monthly payment. Mark did add an important note of caution around debt consolidation specifically: while rolling debts into a home loan reduces monthly outgoings, the total interest paid over the longer loan term can be significantly greater, and borrowers should go in with a clear understanding of that trade-off.

A financial check-up with a broker costs nothing and can identify meaningful savings. Contact Evolve Lending & Finance to see where your loan stands and what might be possible.