Flourish Health & Wellbeing eMag - Latest Edition - Flipbook - Page 49
What to do when rates rise:
An Australian action plan
1) Check your rate against the
market: Do not assume loyalty is
rewarded. Look at your current
interest rate, comparison rate, and
fees. Even small differences can add
up over years.
2) Review your loan features:
Are you paying for an offset you
barely use? Are you using redraw
but wishing you had the day to day
昀氀exibility of an offset? The best
product is the one that matches how
you actually behave with money.
3) Build a buffer before you
optimise: Extra repayments are great,
but not at the expense of running
your cash too tight. Start with a
realistic cash buffer, then push harder
on the mortgage.
4) Consider re昀椀nancing, but do
the maths: Re昀椀nancing can reduce
your rate, but watch the full cost:
discharge fees, application fees,
ongoing package fees, and whether
you lose features you value.
5) If you are struggling, talk early:
If repayments are becoming
unmanageable, contact your lender
before you miss payments. Early
hardship discussions usually create
more options than late ones.
