How to Deal with Inflation and Rising Interest Rates as A Borrower
As 2022 has come to a mid-year point, it is important to note that Australia, like most of the world, is facing unprecedented levels of inflation and extremely high interest rates. This can mean serious trouble for someone with a home loan or a mortgage.
Interest rates nationwide were hiked in May and then again in June. It is uncertain whether there may be further hikes as the year progresses.
Many Australians are not prepared to deal with inflation and rising interest rates and are worried about having to refinance. Refinancing isn’t always the first choice for many homeowners as they fear they may end up in a worse situation than they began with.
The best way to approach the situation is to have a conversation with your broker and review your home loan or mortgage. Switching to a different loan can actually help you save thousands of dollars this year.
One small benefit of rising inflation that you might take advantage of is that savings accounts across the county have started offering higher rates. If you are somebody that is saving money to put down a deposit on a new house, then this is the time to save more than ever!
It may also be in your best interest to get in touch with various different home loan brokers in order to find the best loans suited to your needs. The best home loan broker in Melbourne is Opulent Finance, with an experienced team with impressive portfolios that is focused entirely on you. Our team prides itself on coming up with innovative solutions for our clients that are customized to their unique situations. Give us a call for more information on how we can help you manage rising interest rates and inflation.