Wondering about the effect of rising interest rates?
The reference rates for home loans have begun to rise – read what a home owner or home buyer should know about rising interest rates and how to prepare for them.
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.
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.