5 ways to benefit from record low interest rates
Interest rates are at their lowest level in years and the forecasts suggest they will continue to drop. With low interest rates comes opportunities, so how can you or your business take advantage of this?
Pay off your debt quickly
As interest rates fall as you continue to may constant repayments to your debt, you will reduce the time taken to pay off your loan whilst also reducing outstanding capital. The great thing about this strategy, is you don’t need to do a thing!
Refinance your home loan
As interest cuts continue, it’s a smart idea to shop around and see if you can find a better deal. The key here is to make sure you take all fees into account to ensure you are saving money!
You should also look into securing a fixed interest rate. You can do this on all or part of your loan. This will protect you from the impact of rising interest rates into the future.
Buy a first home – or upgrade
Low interest rates present the opportunity for first home buyers to get their foot in the property market. Despite this, lower interest rates do tend to drive up property prices.
Borrow to invest
Borrowing to invest in shares is a smart wealth creation strategy. Effective investing is simple, your total returns must exceed your total costs. As the most significant cost is usually the interest on the loan, low interest rates make this strategy more attractive.
Expand your business
The whole point of reducing interest rates is to stimulate growth in the economy. Low interest rates allows businesses to borrow at a cheaper rate and increase productivity whether that’s by hiring more staff, buying equipment or buying out a competitor.
If you have any questions don’t hesitate to contact Enrizen!