Six tips to save in an interest-rate-rise environment
Some ways you could save money while interest rates continue to rise include :
1 . Refinance : Get your broker to check if you can reprice or refinance your loan to a lower rate or for lower fees .
2 . Consider your package : Your broker can also check if your home loan package suits your needs . Switching to something more basic if you ’ re not using all the features could save you in fees . Or if you would make use of additional features that could save you money , such as an offset account , your broker can run the calculations for you to determine if it ’ s worth switching .
3 . Change the term : You could consider extending the term of your loan to lower repayments . Keep in mind this means you ’ ll be paying more over the life of the loan , but is an option if you ’ re experiencing cash flow problems now .
4 . Check your budget : By making note of all your expenses , you could identify areas where spending could be reduced . This could include memberships , subscriptions or luxury purchases .
5 . Offset account / redraw facility : If you have an offset or redraw facility , now is a very good time to make use of them . By putting money into your offset or additional repayments on your loan , you ’ ll save on interest which becomes even more money as interest rates rise .
6 . Extra repayments : If your loan allows for it , consider making extra repayments now , which can save you money in the long run as interest rates continue to rise .
If you ’ re looking for ways to save on your home loan , speak to your broker for a free , no-obligation home loan health check . They can also discuss your options and the right strategy to achieve your goals .
Andrea McNaughton Managing Director Loan Market
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