Why should you hedge your home loan against rising interest rates?
When you add an interest rate hedge to your loan, you will protect your loan from changes in its reference rate and will no longer need to worry about interest rates rising. 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.
It is actually worth locking in an affordable interest rate hedge right now while interest rates are low. This will allow you to continue to enjoy the current low rates in the future, securing the monthly payment on your loan for years to come!