How should our home loan customers prepare for a rise in interest rates?
The monthly home loan payment is often the largest single expense in a household. Therefore it’s good to consider how much higher interest costs you can afford so that in addition to your home loan costs you can also save some money, pay your normal day-to-day expenses and spend money on something you enjoy.
- One way to prepare for an increase in expenses is to put money aside in advance. You can use the buffer if your loan servicing costs increase. With a buffer in place, it’s easy for you to start growing your wealth. Read why you should save while paying off your loan.
- You can protect your finances with interest rate hedging, so you'll know your maximum monthly payment in advance. This will prevent the interest rate on your loan from rising beyond what you can afford.