Secure your home with interest rate hedging
The monthly home loan payment is often the largest single expense in a household, which is why it makes sense to hedge against the risks it involves. One way to prepare for a rise in interest rates is to grow your savings. Another option which can bring you some financial peace of mind is interest rate hedging.
How can you prepare for higher interest rates?
If you have a home loan, we encourage you to assess how your finances will withstand higher interest rates and to find ways to protect yourself against them.
One way to prepare for rising interest rates is to put money aside in advance. This gives you a buffer you could use if your loan servicing costs increase. You can book a free meeting for investment advice with us if you want to hear how saving monthly while paying off your loan can give you some extra leeway.
You can also protect your finances with interest rate hedging to prevent the interest rate on your loan from rising beyond what you can afford. When you purchase an interest rate hedge, you always know the maximum monthly payment on your home loan.
Read our answers to frequently asked questions about rising interest rates
- What is the reference rate of a home loan?
- Why are home loan reference rates rising?
- Can reference rates fall again or is this rise permanent?
- How high will interest rates rise?
- How will the rise in reference rates affect home prices?
- Will the rise in interest rates have an effect on home selling times?
- When will the interest rate on my loan change?
- How much can my loan repayment increase as interest rates rise?
- How can I prepare for a rise in interest rates?
- What should I look out for if I’m planning to buy a home?
- I’m planning to build a house. What should I do now that construction costs are rising?
- What should I do if I’m struggling with my loan repayments?