Will Interest Rates increase this year ? 2

Will Interest Rates increase this year ? 2
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According to a recent article in Your Mortgage magazine,
"Mortgage interest rates to hit 9.5%",
there is a strong possibility of an Interest Rate rise during the course of this year.
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The article continues , "Mortgage holders take note: there's a good chance you'll be paying up to 2% more for your home loan by Christmas.. At least that's what industry forecasters BIS Shrapnel are predicting. BIS Shrapnel is expecting a recovery in residential property markets that will drive interest rates up by 2% in the next two years,

 boosting the standard variable rate on a home loan up to 9.5%.

BIS Shrapnel .... points to a potent mix of a strengthening economy,

record low unemployment and increasing net migration as the key drivers

 of Australia's forthcoming real estate recovery."

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1) Why should you create an Alpha Budget to prepare for any potential Interest Rate rise ?

Some Householders are caught up in speculation about Interest Rates and their propensity to rise , instead of preparing their Finances for this eventuality. But the problem for many people is equating Budgeting with pain and stress, and placing the Budget on the same level of priority as the Dentist.

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However, by not creating an Alpha Budget to deal with potential rises in Interest Rates,

more pain will be experienced by the Client because they have not been adequately prepared

 by their Accountant.

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The above cartoon is an analogy of a Dentist forgetting to use Novocain with a Client.

 not using an Alpha Budget to prepare for the Pain of any potential Interest Rate rises .

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2) Has your Accountant discussed the creation of a Budget

to assist you with dealing with increased Interest costs ?

Accountants need to be pro-active about creating Budgeting Programs for their Clients to deal with the stresses of increased Mortgage payments.

If your Accountant is not discussing these issues with you it may be time to consider changing Accountants to a member of the Alpha Accountants network .

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3) Why do some Mortgage Brokers avoid discussing Interest Rate rises by using the pain avoidance Disneyland Marketing method ?

Some Mortgage Brokers prefer not to discuss the possibility of Interest Rate rises with their Clients for fear of scaring them away from the sale.

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We interviewed the fictitious Mortgage Broker 'Jack Black' to find out why,

Alpha Accountants  - ' Tell us Jack, why don't you  like to discuss Interest Rate rises with your Clients ?' 

Jack Black - 'Look mate it's simple ,  just simple like selling Used Cars,

 if you tell them that the Car is going to need regular Servicing then they won't want to buy it,

and  if you talk about Interest Rate rises with the average Joe, it scares them off the deal,

 they don't want to know about it, so we give 'em what they want,

we just say that everything is just Disneyworld  right now,

and that there will not be any Interest Rate rises for years to come.

They swallow it hook, line and sinker because this is what they want to hear.

 It's not my fault, it's not my responsibility if there is an Interest Rate rise.

What do I care ?'

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Would you like to join the Alpha Accountants Team of Mortgage Brokers ?

Phone 

   Craig Holme  on 0423 585 832

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