Loan Market Group is urging all borrowers to use the festive season to conduct a mortgage health check.
According to the brokerage’s chief operating officer Dean Rushton, the Reserve Bank will more than likely move rates again in 2011, while banks could also lift rates independently of any decisions of the central bank.
“Home owners should be preparing for rates to keep rising after four increases during 2010,” Mr Rushton said.
“There have been some predictions that the RBA could raise the cash rate from its present level of 4.75 per cent to as much as 6.0 per cent by the end of 2011.”
Mr Rushton said in the current economic climate it was beneficial for home owners to act now to determine whether they could get a better deal or structure their home loan differently.
“A mortgage broker is best placed to review an individual home loan and determine whether any changes are needed and improvements made,” he said.
Mr Rushton said it cost nothing to have a home loan health check conducted by a mortgage broker, but the process could save home owners thousands of dollars.
“A mortgage broker can assess whether it’s more beneficial to stick with a variable home loan rate, a fixed rate product or a mixture of both,” he said.