The era of really low borrowing rates is sadly over. Planning ahead is a good idea because rising interest rates are predicted to continue over the next 12 – 24 months.
There’s a good chance the loan you currently have is no longer right for you. Worse still, your interest rate may no longer be competitive.
Borrowers on a variable rate, expect your interest rate to go up straight away. Within a day of the RBA’s latest announcement, all four major banks notified customers that they will be raising variable rates in line with the cash rate, and other lenders will mostly followed suit.
Borrowers who locked in record-low fixed interest rates in recent years are likely to face a substantial increase in mortgage repayments when your fixed terms end and you inevitably roll onto the lender’s standard variable rate.
Higher interest rates will translate to higher monthly repayments, so some budgeting might be in order.