The constant rise in interest rates is a new experience for many mortgage holders.
Since May, the Reserve Bank of Australia has raised the cash rate from 0.1% to 1.85%.
Cash rate increases directly impact the interest rate of your home loan, which affects the amount you pay in interest every month. According to our calculations, if your interest rate increases from 3% – 3.5%, your monthly repayments will be $3,592. You’ll pay $43,104 per year and $1,293,249 for 30 years.
Borrowers do not have to worry about the rising rates. Lenders take a refinance with a lender who offers you a competitive rate. If your loan is not meeting your needs, do not stick with your current lender.
- We will negotiate with your lender to secure you the best deal.
- We will show you the options available to you so that you can decide whether a variable or fixed home loan is best for you.
- Consolidate your debts and make them more manageable.
- Make use of an app that can prepare you for a rate increase by taking simple steps. Change your lifestyle and cut back on unnecessary costs. It would be best if you did not go beyond your financial means, as this could lead to you defaulting on your loan repayments.