Is a recession on the cards? Here’s how homeowners prepare
%20(1)%20(1)%20(1)%20(1)%20(1)%20(1)%20(1)%20(1)%20(1)%20(1).png)
The risk of a recession could be as high as 80% over 2023 and potentially 2024, according to internal Reserve Bank of Australia (RBA) research released under a freedom of information request.
The modelling, made in September 2022, found that the risk of a recession by September 2024 could be as high as 80%. The research found that if a recession were to occur, it would be over the course of the next four quarters with a 40% to 60% chance of a recession in September of 2023.
Whether the RBA can get inflation down to its 2-3% target without an economic contraction and/or mass unemployment remains to be seen. However, for homeowners, this could mean further interest rate hikes and more expensive home loans.
So, the question is, what can homeowners do to protect themselves from further rate hikes and potential recession risks?
Recession-proofing measures home owners you can take
While no one can predict the exact timing or severity of a recession, if it happens at all, the grim predictions by the RBA research means that being prepared is important.
-
Build an Emergency Fund: Establishing an emergency fund is crucial during uncertain times. Aim to save at least three to six months of living expenses. This fund can be a safety net in case of unexpected job loss or financial difficulties.
-
Reduce Debt: High levels of debt can be burdensome during a recession, especially on top of a mortgage. Prioritise paying off high-interest debt and consider debt consolidation so that, instead of paying multiple loans, you only have one loan to deal with.
-
Refinance your home loan: Feel like your home loan isn’t as great as you want it to be? Refinancing your home loan is a great way to get a better deal for your mortgage. Maybe you feel like you can get a better rate, or are you looking for an account with an offset with it? Refinancing can let you get a loan with a provider that helps you through the tough times.
-
Build up your offset account: If your mortgage has an offset account, it might be a good idea to start making regular deposits. Not only will it reduce the interest on your payments—which is even more important due to interest rate hikes—but you’ll also have a place to keep emergency funds.
Whether there is a recession or not, making sure you’ve got the home loan that’s right for you is important. At Mozo, we have comparisons on a bunch of refinancing home loan providers, so that you can get the mortgage that works well for you.
-
Promoted
Mozo experts choice awards won:
- Low Cost Home Loan - 2025
Unloan Variable Home Loan
- Owner occupier
- Principal & Interest
- 20% min deposit
- Redraw available
Go to site- Interest rate
-
5.19
%
p.a.
Variable
- Comparison rate
-
5.10
%
p.a.
- Initial monthly repayment
-
$2,742
- The first home loan with an automatic loyalty discount (conditions apply)
- No application or banking fees
- Built by CommBank
- interest rate
-
5.19% p.a. (5.10% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$0.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$0.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$10,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
no
- Other restrictions
-
-
- Other benefits
-
Rate automatically discounted by 0.01% p.a. every year up to a maximum discount of 0.30% p.a..
- Special Offers
-
-
Read reviews and learn more about Unloan home loans
Go to site
-
Mozo experts choice awards won:
- Low Cost Home Loan - 2025
Unloan Variable Home Loan
- Owner occupier
- Principal & Interest
- 20% min deposit
- Redraw available
Go to site- Interest rate
-
5.19
%
p.a.
Variable
- Comparison rate
-
5.10
%
p.a.
- Initial monthly repayment
-
$2,742
- The first home loan with an automatic loyalty discount (conditions apply)
- No application or banking fees
- Built by CommBank
- interest rate
-
5.19% p.a. (5.10% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$0.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$0.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$10,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
no
- Other restrictions
-
-
- Other benefits
-
Rate automatically discounted by 0.01% p.a. every year up to a maximum discount of 0.30% p.a..
- Special Offers
-
-
Read reviews and learn more about Unloan home loans
Go to site -
Mozo experts choice awards won:
- Low Cost Home Loan - 2025
- Investor Home Loan - 2025
Discount Great Rate Home Loan
- Owner occupier
- Principal & Interest
- 20% min deposit
- Redraw available
- Cashback
Go to site- Interest rate
-
5.19
%
p.a.
Variable
- Comparison rate
-
5.20
%
p.a.
- Initial monthly repayment
-
$2,742
- Get up to $3,000 cashback when you apply online (T&Cs apply)
- No paperwork or payslips required (see site for details)
- Low variable rate
- interest rate
-
5.19% p.a. (5.20% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$180.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$300.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$150,000
- maximum borrowing amount
-
-
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$0.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Legal fees charged at cost.
- Other benefits
-
-
- Special Offers
-
Apply online cashback offer $2,500 for new loans of $250,000-$499,999 or $3,000 cashback for $500,000 or more for purchases or refinancing, LVR <80%. Up to $2,500 cashback for refinancers or first home buyers for applications made with lenders. T&Cs apply
Read reviews and learn more about Greater Bank home loans
Go to site -
Mozo experts choice awards won:
- First Home Buyer Loan - 2025
Variable Home Loan 90
- Owner occupier
- Principal & Interest
- 10% min deposit
- Offset available
- Redraw available
Go to site- Interest rate
-
5.29
%
p.a.
Variable
- Comparison rate
-
5.33
%
p.a.
- Initial monthly repayment
-
$2,773
- No monthly or ongoing fees
- Option to add an offset for 0.10% p.a.
- interest rate
-
5.29% p.a. (5.33% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$530.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$0.00
- Package
-
-
- Maximum loan to value ratio
-
90.00%
- minimum borrowing amount
-
$50,000
- maximum borrowing amount
-
$2,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$0.00
- Offset account
-
yes
- Split account
-
yes
- Other restrictions
-
Offset sub-account available for additional +0.10%. $300 discharge fee and $250 discharge documentation fee applicable if loan doesnt go to full term.
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about loans.com.au home loans
Go to site
Your selected home loans
Get product update alerts
We’ll keep an eye on rates, fees, and product updates and send you an email as soon as we see a change. Notify me for changes on:
You're all set!
We’ll keep you in the loop and email you as soon as there are any product changes.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.