Interest rates – 1 or 2% higher? Never fear

Is the interest rate 1-2% higher than what you were expecting or comfortable with? Don’t let this deter you from pursuing your investment or purchase, or unnecessarily disrupt your cash flow.

Unless you are borrowing amounts exceeding $1 million, a small 1-2% difference in the interest rate will have a negligible impact on your monthly repayments. For example, with a $100,000 loan, a 1% higher interest rate would only increase your monthly payment by around $50-$60. This difference is minimal when compared to the potential cost of losing out on the opportunity you are pursuing.

Focusing solely on interest rates could mean missing a valuable chance to grow your business, secure an important investment, or capitalize on a time-sensitive deal. At Gemex Advisory, we emphasize helping clients see the bigger picture, ensuring you can seize opportunities without being overly constrained by marginal differences in interest rates.