PERTH & MANDURAH 08 9367 4222

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The number one talking point in home loans today is whether the variable interest rates will rise in 2022. The Reserve Bank has confirmed they will, however there has been no indication of when in the year this will occur.

So, what can you do to prepare for an interest rate rise?

Firstly, you should note that most people with a home loan have already prepared for a rate increase. When applying for a home loan, the assessment of what you can borrow with the bank has been checked between 2% – 3% higher than your actual home loan interest rate at the time of applying for your loan.

Secondly, most people would have reviewed their monthly budget to confirm what they spend per month on fixed costs and discretionary spending.

Below are some things you can do in advance to see how the potential increase will effect your monthly budget.

Remember; everyone’s financial position is unique. There is not one solution for everyone. Make sure to contact us and we can help you plan for the future.