Welcome back to another episode of the 360 Money Matters Podcast!

In this episode we will discuss the "fixed rate cliff" for mortgage interest rates in Australia, which has left many homeowners facing significant increases in their repayments as they switch to variable rates. We will also discuss strategies for managing the resulting cash flow pressure, including resetting the loan term, making additional repayments, converting to fortnightly or weekly payments, and switching to interest-only loans.

What we recommend you to do is seek help from financial advisors or lenders, and reassess your cash flow situation. Proactive management is also a good way to avoid adverse outcomes on credit history and borrowing capacity, with selling properties considered a last resort option.

Listen now to learn how you can prepare for and navigate this challenging situation.

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This podcast contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This information is provided by Billy Amiridis & Andrew Nicolaou of 360 Financial Strategists Pty Ltd, authorized representatives and credit representatives of AMP Financial Planning – AFSL 232706

Episode Highlights

• Practical steps to manage the fixed rate cliff

• Implications of switching from fixed to variable rates and adjusting spending patterns

• Cash flow management strategies

• Refinancing and resetting the loan term

• Repayment frequency

• Work with and notify your existing lender

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360 Financial Strategists

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