Interest rates have gone up, now what?

Unless you’ve been hiding snuggly under a rock, you’ll know that the RBA recently announced a hike in interest rates. The clever people who know about these things predict we are likely to see interest rates go higher before they come down again.

Which might be a little bit scary if you’ve got a big mortgage to pay. Or a well-planned budget to stick to. Or you just don't like handing over even more money in interest to the bank.

So, how do you weather the storm of rising interest rates without losing your cool (and a bazillion hours researching)?

Re-evaluate your spending

Everyone's favourite way to spend a lazy weeknight is budgeting. The spreadsheets, the bank statements; really riveting stuff. Am I right?

No, probably not.

But if your mortgage repayments are about to go up, now is an excellent time to revisit your spending and look where you can make cuts in other places.

Maybe it’s dropping a couple of take-away coffees each week, getting rid of that streaming service (and maybe getting your BFF to share their login instead) or reducing the number of nights you dine out. Chances are there’s somewhere in your budget where you can cut back to make space and give you room to breathe.

Is it time to refinance?

Feeling like your bank is no longer offering you the best deal? Walk and talk with your money.

If your interest rate has started moving upward and you’re wondering if there might be something better out there?

It’s time to reassess, negotiate and think about refinancing.

Get ahead, build a buffer

With interest rates predicted to continue rising, now might be a good time to begin making additional payments if your budget and loan allow. If you have an offset account you can park your funds here to offset the interest while still having access to the funds to redraw if need be.

It’s a little security blanket that offers you some protection against the cheeky little RBA decisions.

Talk to a Broker

Hi Hello!

Who’s got their finger on the pulse of all the best interest rates of deals out there? Your broker does. It’s literally their job.

So if you’re thinking that perhaps it’s time to refinance, or you’re no longer happy with the mortgage you have, a broker can help you. In fact? They'd absolutely love to.

Rising interest rates can put pressure on your household budget and stress on your shoulders, but it doesn’t have to have you sweating.

Whether it's some minor budget tweaks or a complete refinance, there are options available to you, and your broker is more than happy to help you find the right solution.

Want to discuss your options? Book in a complimentary 15-minute virtual cuppa with us Lenny.