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Are Rising Interest Rates Affecting You?

July 19, 2022

If your home or business borrowings are on floating rates you will be all too aware of the impact of rising interest rates.
The “trap” is, of course, where you were able to get a very low interest rate during the past couple of years and your lock-in period is coming to an end.
Even if your fixed rate extends for a few months, it is a good idea to do some planning now – to avoid or reduce the coming pain!


  • Review your current mortgage structure – how much you have on floating rates and what parts of your loan are on fixed rates and until what date.
  • If your fixed rates were to move on to today’s rates how much more would your repayments be? (Ask your mortgage adviser to help you with this – I have a good contact if you need to talk to a good Mortgage Advisor.)
  • Work on a plan to manage with the new higher interest rates. A key part of this could be saving a bit more now – so you create a “buffer” when your current fixed rate ends. How? – review your budget to see what expenses you can reduce and look at ways to increase your income. If you have any higher interest debt, such as credit cards, work to clear these first. Your bank will then look at you more favourably too!
  • When the time comes for your currently low fixed rate to end / be renewed take advice from your mortgage broker on the best options for a new fixed rate. They know the market and will be able to help you through these tough times.
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