We recently sat down with Anthony Kirk, the founder and principal of Tailwind Finance, a leading mortgage broking business based in Coolangatta. Anthony has been instrumental in helping several clients navigate the complexities of securing the right mortgage.   

Check out Anthony’s insights and tips for getting the most from your lender in the current climate.  

Fuse:  With high interest rates, what should mortgage holders consider before refinancing?

Anthony: Many mortgage holders have fixed rates coming off historically low rates and should definitely be testing the market for a better rate. Unfortunately, banks tend to penalise existing clients rolling off fixed with a higher variable rate, or, they will also have interest rate creep on current clients with variable rates. To avoid paying “loyalty tax” the first port of call is to speak with your current lender, tell them to put you in touch with their discharge team as you will be moving, this will give you a guide on their lowest rate. Failing that, contact a broker and see what other lenders are offering, make sure that all your liability payments are being met and if you have had any extra expenses of late to explain what they are (holidays, birthdays, illness etc). 

Fuse: Is now a good time for borrowers to lock in their interest rates, or should they wait for potential decreases?

Anthony: There is no correct answer here and another good reason to discuss your circumstances with a broker. If a client has a lot of excess cash, then a variable rate with an offset to minimise repayments might be the solution. Conversely, a young family with a new child on the way might want the stability of knowing exactly what the repayments will be over the period and to budget accordingly. Markets are impossible to predict and at the end of the day it is what is going to suit your lifestyle.

Fuse: What budgeting strategies can mortgage holders implement to manage higher monthly payments?

Anthony: With the rapid rise in interest rates, managing higher monthly mortgage payments can be daunting, especially when household incomes are fixed. The key is to focus on what you can control—your expenses. If you’re feeling the pressure, seeking guidance is essential. Lisa & Saul, who offer financial planning services in the Tweed Heads region, can help you identify areas where you can tighten your budget and explore strategies to ease the financial strain. Start by ensuring you’re on the lowest possible interest rate and that your mortgage product suits your needs. 

Fuse: What are some common pitfalls mortgage holders fall into during high-interest rate periods, and how can they avoid them?  

Anthony: One common pitfall mortgage holders face during high-interest rate periods is falling victim to the ‘loyalty tax.’ This occurs when long-term customers of a lender end up paying higher interest rates compared to new customers. Lenders often offer better rates to attract new clients, leaving existing customers on less competitive rates. To avoid this, it’s essential to regularly review your mortgage terms and ask questions—whether through a broker or directly with your lender—to ensure you’re on the best rate possible. 

Another key point is to stay on top of your repayments. Missing payments can harm your credit report, making it harder to switch lenders or secure better terms in the future. Remember, lenders are usually willing to work with you to find a solution during challenging times, so don’t hesitate to reach out for help. 

Anthony Kirk

Director 
Cert IV in Mortgage Broking 
MFAA Accredited 
Bachelor of International Finance (Accounting) 

E: akirk@tailwindfinance.com.au
T: 0422 260 386 

Anthony Kirk is a fully accredited mortgage broker and member of the Mortgage & Finance Association of Australia (MFAA) who is committed to providing his clients with the best customer service and sage advice in this ever-changing finance market. 

After completing his bachelor of International Finance (Accounting), Anthony worked as an accountant before moving to Sydney to work with Deutsche Bank in the Credit Trading Risk and P&L team. Anthony’s thirst for economic knowledge is what sets him apart from other brokers in the market, making sure his clients are aware of the factors which can influence how much interest they pay for the life of their loans. 

Anthony takes pride in developing long term relationships with his clients, and is passionate about ensuring clients receive the highest level of quality advice in order to assist them in achieving their financial goals.