Already this year we have helped a few clients avoid what has been referred to as the ‘mortgage cliff’. In short, the term ‘mortgage cliff’ refers to ‘when a borrower comes off a low fixed rate say at 2% and then their repayments jump to around 5.5% (in the current market)’.

Recently, we worked with a client to understand out what they could afford when they came off their fixed rate. We looked at a few lending options and found a lender that had the lowest variable rate on our panel.  We were then able to refinance the client to a new lender and bump out their loan term in order to help reduce the monthly repayment, whilst still having the option of making additional repayments when able.

The client wasn’t so concerned about the ‘mortgage cliff’ now and is confident they can make their repayments without too much impact on their lifestyle.

CONTACT scott@oceanlending.com.au for further information.