Click here to read the full Reserve Bank of Australia media release.

Combat a rise in interest rates now!

After five successive months, it's almost inevitable that borrowers will have to cope with an interest rate rise within the next six months. Don’t panic! The best thing you can do is to prepare now for higher mortgage costs.

Our 'in house' Accredited Mortgage Consultant, Grant Besley, recommends following these three simple steps:

1.  Re-evaluate your loan

If you've had your mortgage for more than a couple of years it may no longer be the most cost-effective option for you.  Speak with your mortgage broker about your current financial situation and make sure you have the best loan to suit your needs. It will take no time at all and could save you a fortune.

2.  Create a worst-case-scenario budget

It's important that you revise your budget and accommodate the worst-case-scenario.  Factoring in inflations and higher mortgage repayments will help you to identify what you can afford and how your spending habits need to change.  Preparing for the worst now means that an interest rate hike won't come as a rude shock later.

3.  Put pretend into practice

Pretend interest rates have already gone up and change your spending habits now.  Use the money that would go towards a higher mortgage payment - if interest rates were to rise - to pay off your credit card or personal loan.  By applying the money to your debt, you're not only decreasing your debt while you have the opportunity, you're getting used to a higher mortgage repayment at the same time.

There continues to be some very attractive and competitive loan packages out there in the market place, so why not consider a suitable refinance package now.

At McConachie Stedman, we can review your current loan position to ensure you are on a competitive and suitable loan package.

Please call Grant  for a free review of your home or investment loan. 

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