Beat the Rate Hikes with Smart Finance Thinking

With the Reserve Bank of Australia (RBA) increasing official interest rates for the first time in five months, waiting until Melbourne Cup Day to increase the cash rate 25 basis points to 4.35%, now is the time to work with your broker and come up with a plan. Read on:

CapStack has been instrumental in helping clients secure optimal debt solutions for their diverse real estate projects and acquisitions.

Here is the CapStack 8 Point plan to deal with interest rate hikes:

1. Impact of the Recent Rate Rise:

• Many homeowners, property investors, and developers will be affected by the recent interest rate increase.

2. Initial Reaction - Wait and Assess:

• When faced with news about rate hikes, it's best to initially do nothing. And certainly don't panic.

• The official cash rate change doesn't necessarily mean your specific interest rate will change immediately.

• The timing and extent of your rate increase can vary based on several factors.

3. Patience is Required:

• Banks tend to adjust residential mortgage rates relatively quickly, while commercial rates might have a lag.

• Factors beyond the official cash rate can influence how your loan rates behave.

4. Understand your changed circumstances:

• To understand how you're affected, you can wait for your next loan statement or call your lender for an explanation.

5. Engage a Broker:

• For residential loans, contact a residential broker, and for other loan types (investment, development, business) reach out to CapStack.

• We can help you navigate the complexities of rate changes and find the best available deals. This can mean better rates or adjusting other factors such as LVR, loan term, interest-only repayments etc.

6. Opportunity for a Better Finance Deal:

• Even with rising rates, you may have an opportunity to secure a better deal than you have been on to this point.

• Brokers can explore the market and potentially find more favorable rates than what your bank originally offered.

7. Broker Costs:

• Brokers like Capstack often offer their services at no initial cost.

• You can consult with them to explore your options, and in most cases, they can secure you a better deal without any direct charges.

8. Start a Conversation:

• Contacting us is an obligation-free and an empowering step.

• It can lead to a better loan deal, and we'll always shout the coffee.

While the era of ‘cheap money’ is certainly over for the time being, keeping your trusted commercial mortgage advisor close to your team is beneficial in navigating the evolving dynamics in the sector. We assist owners and investors in property capital optimisation and efficiency - every day.

Consider CapStack your in-house commercial mortgage broker.

For more expert insights and news on commercial property finance, borrowing as part of an investment strategy, business acquisitions and entrepreneurial strategies, subscribe to the CapStack blog or join the conversation with us on LinkedIn .

Why CapStack?

When it comes to securing the right financing for your business or commercial property acquisitions and projects in Australia, CapStack is the partner you can trust. With unparalleled expertise, a vast network of lenders, personalised service, and data-backed insights, we are committed to your success. Get in touch with CapStack today and unlock the full potential of your commercial ventures with our expert property finance services.

CapStack can assist with bank, non-bank, or private financing. Start here to connect with us and send through some basic information to get the ball rolling or email us directly. Our lenders are Australia-wide and ready to fund investments acquisitions and development projects. CapStack help's developers and investors fill their capital stack by providing access to the capital puzzle piece they are missing. CapStack works directly with developers and investors who need access to capital markets.