Rates Are Up, Don't Let It Get You Down
Article by Mozo
Rates are up again! One minute it?s a recession, the next we?ve got rising rates ? it?s enough to do your head in. So how do you know if the rate changes are affecting your finances? Could you save thousands by switching providers?
While your high interest account will put a smile on your face as the banks up their interest, what happens to your budget as home loans rise?
Well at the moment, not a whole lot. But that doesn?t mean you shouldn?t start planning for the long term. If the RBA follows predictions and continues raising rates, it will probably mean a cash rate of around 5% in the not too distant future. For borrowers this means around 2% more interest on top of existing loans.
For a typical loan of $250,000 this will mean an extra $300 in monthly repayments.
But it?s not all bad news. Rising rates also means higher competition, so switching to a different loan better suited to your personal situation could save you thousands.
So take a second to run your current deal through our Home Loan Health Check/mozo.com.au/home-loans/health-check> to see if your loan is costing you more than it should.