Borrowers urged to conduct 'home loan health check'

Aussie borrowers have been urged to conduct a "home loan health check" ahead of likely mortgage interest rate rises this year.

Speaking to the South Australian Advertiser, mortgage consultant Alex Filipovic also suggested that borrowers compare home loans and weigh up alternative deals in light of their overall circumstances.

"Interest rates are important, but they're not always the whole story," he said.

"It's best to look at your whole financial position in the process; personal loans, cost of living expenses, and credit card debt, something that a lot of people have at this time of year."

The comments come after Loan Market chief operating officer Dean Rushton pointed to predictions that the Reserve Bank could raise the cash rate from its present level of 4.75 per cent to as much as six per cent by the end of 2011.

Mr Rushton therefore urged Australians to consider whether they should restructure their home loans before conditions change.

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