After years of near-historic lows, ongoing changes to interest rates are having a significant impact on Australians.
Whether you currently have a home loan or are looking to borrow, acting now can ensure you’re well-positioned for what comes next.
Here are some simple tips to help you navigate rate changes.
Review your spending
With further rate hikes predicted, now is a good time to budget for your financial future. Take the time to analyse your expenses and look for areas where you can make reasonable cuts.
Borrowers with a fixed rate home loan might not be feeling the impact of higher rates just yet but should prepare for when their fixed rate term expires.
Commit to extra repayments
Paying more off your mortgage isn’t always possible, but any extra you can spare could result in sizable interest savings over time.
If you’re expecting a tax refund, you may want to consider putting all or part of it into your mortgage.
Leverage your offset account
Finding ways to lower or offset your mortgage principal can help reduce the interest charged on each repayment, which could help you absorb the impact of a rate rise.
You can also transfer and withdraw this money as easily as with any other bank account, making it easy to access your cash should you need it.
Speak to an expert
Whether you have questions about mortgage repayments or plan to borrow in the future, it’s important to get the right advice.
A Liberty Adviser can help you explore ways to relieve financial stress and manage your mortgage effectively.
For personalised help to handle rate changes, speak with your local Liberty Adviser today.