It is always wise for borrowers to plan strategies to beat any future interest rate rises. Here are my Top 5 Tips:

Gary’s tips to beat interest rate rises!

  1. 1. Make Believe Fix your loan now — Get ahead of any rate rises now and fix your repayments on a higher rate now if possible, as if the rate were 2% higher. This enables you to be paying your loan off quicker and save a heap of money in interest before any future rate rises and if rates don’t rise you will be miles in front.
  2. Refinance — If your mortgage is around 5 years old, it could be time to get a home loan health check to ensure you have still got the right loan. There are many new products in the mortgage market now and by simply changing out of your old one to a new one could save you thousands!
  3. Split your loan — For peace of mind and to help you budget for the future; consider splitting your loan now; say half on a fixed rate and the other half remaining on the variable rate, this could give you peace of mind just in case rates do head North.
  4. Know your limits — Borrowing to your absolute limit when rates are low could be a big mistake. When borrowing, factor in a rate rise of 2 -3% to help you decide how much you can afford to comfortably borrow and pay in the long term.
  5. Fortnightly repayments — Set your repayments fortnightly instead of bi-monthly as you will then be making 26 payments in a year rather than 24. This will save you interest costs and reduce the term of your loan.