INSIDE Harcourts 17 5HELPFULMORTGAGE TIPS FOR A RISING INTEREST RATEMARKET Australia www.mortgage-express.com.au NewZealand www.mortgage-express.co.nz Rising interest rates and a higher cost of living havemany homeowners in Australia and NewZealand looking for ways to stretch the budget a little further. Withmortgage repayments going up, there’s no better time to think about spending less and savingmore. Here are 5 helpful mortgage tips for a rising interest ratemarket. 1. Check howyourmortgage is structured Current rates on themarket vary and they’removing quite a bit, so it’s worth checking what type of loan you’re on and that you’re getting the best deal available to you. Contact your lender if you’re not sure, and if you do need tomake some changes, talk to your mortgage broker or adviser for helpwith restructuring your loan. 2. Pay fortnightly instead of monthly If you’re not already doing so, switch to fortnightly repayments. Not only will you save on interest bymakingmore regular repayments, but you could also pay back your loan faster as you’ll bemaking two extra repayments each year, with 26 fortnightly repayments instead of 12 monthly repayments. 3. Use an offset account An offset account is a transaction account linked to your home loan that you canmake deposits into or withdraw from. Money paid into your offset account reduces the balance of your home loan and the amount of interest you get charged. So you save on interest charges. 4. Cut back on spending With inflation at its highest level in close to 30 years, cutting back on spending is a tough one. Start by scrutinizing your budget. Then track your spending. Reduce and cut back where you can. And clear high interest debt as a priority. 5. Get help fromamortgage professional Book a financial health check to get a clearer picture of the impact rising interest rates will have on your budget. Find out if refinancing to a better interest rate is an option. And compare home loan deals to see how yours stacks up. IN FINANCIAL
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