How important is rate to you?
Some will typically commit to a loan based on who offers the most competitive rate. Sometimes that is important to them, whilst others know that interest rates could be unpredictable and that may not be important.
However; what to consider when looking at the rates offered to you are:
- Do I own property?
- Is the asset I am buying from a dealer or private seller?
- What is the age of this asset?
- Has my business been established for more than 2 years? ABN and GST?
- Do I have a good credit file?
- Do I have comparable checkable credit?
In this struggling economy with the Reserve Bank increasing the interest rates, this has not only affected homeowners; but it has also impacted asset finance. Lenders are protecting themselves and have followed suit with the Reserve.
I understand the cost of living has affected a lot of Australians and this is why some are asking themselves can I afford to buy an asset? Based on my knowledge & experience having started my own business and worked alongside so many other businesses over so many years; I can tell you; we have not slowed down.
How else do you grow? How do you counteract this struggling economy? You work harder and grow your business and sometimes that means getting that extra asset.
When applying for a loan, work with a broker that will help you understand that rate is not everything, however a broker that will still offer you the right solution based on your current situation, someone that can still help you understand that paying interest will reduce your taxable income resulting in you paying less tax.
So rate is not everything but buying that right asset at the right time is.
