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It is impossible to know how much interest rates will rise, but one thing we know for certain is that they are rising… 

It is important to look at your budget and financial situation, so you can plan for the increase in your budget. 

If you are worried about the extent of interest rate rises, keep in mind that all increases are introduced gradually. The most important thing to do is get prepared. How can borrowers prepare themselves for the increases in mortgage rates?

Tips to Manage Higher Mortgage Repayments

Here are some tips to help ensure that you can stay on top of your repayments:

Tip 1: Review your mortgage pronto

If you have a home loan bit haven’t checked out the details in the last 12 months, now is the time to do so. You could be paying more than you need to. Did you know, for instance, that many banks will offer new customers a lower interest rate than existing customers? Check out your current rate and see what you are paying. Then…

Tip 2: Contact your bank

Make sure that you are not paying too much by checking the interest rate that you are paying with the interest rate that the bank offers new customers. Then call them and ask for a discount. Tell them that you are thinking of refinancing, and you would like to know if they are willing to offer you a discount to stay with them. They could say no, or they may shave off some of your repayment, gibing you an instant saving. 

Bonus tip: If you do secure an interest rate discount and your repayments go down, set up a direct transfer of the difference into a separate bank account that you do not touch. If you let that money build up over time, you can use it towards your repayments when they increase. Or simply leave the direct debt instalments as it is and leave the extra money in your mortgage. 

Tip 3: Review the market

Whether your bank agrees to a discount or not, have a quick look around at other deals that are available. This is where a mortgage broker may be able to help. We look at your situation and review the market for you, then come back to you with the best offers and deals to suit your needs. Shopping around could see you save hundreds or even thousands of dollars a year on your home loan. 

Tip 4: Look for cash-back deals

Many lenders offer cash-back deals when they approve you for a loan. There are a few fees and charged involved when you refinance, but if you find a loan that suits your needs and it offers cash-back, you could bank $2,000 to $2,500 from your refinance. Set this money aside in a bank account you don’t touch or consider making an extra repayment in your variable-rate home loan now and you will instantly make a saving on interest.

Tip 5: Start saving

Interest rates are going up and your mortgage repayments will go up with them. Look at your budget to find ways to set aside the extra money for the expected increases now. This way you will be able to afford the repayments when interest rates rise, and you will build up a small nest egg to help you deal with the increase in rates.

If you calculate your future repayments and realise you might have trouble making repayments at the higher amount, it is a good idea to reach out to an experienced mortgage broker. They can look at your overall situation and potentially restructure your debt, so that you don’t get into financial stress down the track.

Phone: 1300 855 022
Email: clientservices@zippyfinancial.com.au     


Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.      

About the Author:

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.       

Connect with Louisa on Linkedin.      

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).    

Disclaimer:This article contains information that is general in nature. It does not consider the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether in business, health or financial.      

Has rising interest rates got you feeling a bit vulnerable? It may be time to take some control back by refinancing or asking for a rate review. Why are we seeing refinancing numbers surge across the country?

In just a couple of months we have seen the Reserve Bank of Australia (RBA) increase the cash rate from a record low of 0.10% to 0.85% and it has not taken long for most lenders to pass those rate increases onto customers. Unfortunately, the RBA has warned us that more rate hikes are on the way. 

There are ways you can make yourself feel more in control, including by doing what tens of thousands of mortgage holders around the country have done – refinancing or asking their current lender for a better rate.

Homeowners are Refinancing in Droves

According to PEXA’s largest refinancing insights, refinancing increased by more than 20% in May (from April) across each of Australia’s most populous states. 

Here is a breakdown:

NSW: 10,823 refinances – May up 20.8% on April, and up 15.6% year on year.
VIC: 11,500 refinances – May up 26.7% on April, and up 23.3% year on year.
QLD: 6,699 refinances – May up 21.8% on April, and up 49.6% year on year. 
WA: 3,244 refinances – May up 25% on April, and up 46.1% year on year. 

Why the Big Increase in Refinancing? 

Lenders now, more than ever, need to attract and retain borrowers. 

Just because rates are going up, does not mean you can’t scope out a better deal, especially if you have a decent amount of equity and strong track record of meeting your mortgage repayments. If that sounds like you, then you are a good customer, and lenders want good customers. 

The other big reason for the recent surge in refinancing is that smaller lenders are stealing more and more borrowers away from the major banks with super-competitive rates. 

In fact, according to PEXA, in NSW, VIC, QLD and WA combined, the major banks and their subsidiaries had a net loss of more than 5,000 borrowers to non-major lenders in May. 

Competition is fierce!

Why Work with a Broker Now?

The amount of loans being written by brokers continue to grow. Brokers are currently writing 70% of all new home loans in the country – which is the biggest market share ever. And as you know, brokers are loyal to you, not to any lender. 

This means, that if we think you can get a better deal elsewhere, we will encourage and help you to do so, not hope that you will stay put on your current rate. 

And even if you do not want to refinance with another lender, there is always the option of asking your current bank to review your rate (and indicating that you have prepared to refinance if they don’t come to the table). If you would like to find out more about what options are available to you, get in touch with us today. We would love to help you feel like you have some agency in the period ahead. 

Phone: 1300 855 022
Email: clientservices@zippyfinancial.com.au     


Zippy Financial is an award-winning mortgage brokerage specialising in home loans, property investment, commercial lending, and vehicle & asset finance. Whether you are looking to buy your first home, refinance or build your property investment portfolio, the team at Zippy Financial can help find and secure the right loan for you and your business.      

About the author:       

Louisa Sanghera is an award-winning mortgage broker and Director at Zippy Financial. Louisa founded Zippy Financial with the goal of helping clients grow their wealth through smart property and business financing. Louisa utilises her expert financial knowledge, vision for exceptional customer service and passion for property to help her clients achieve their lifestyle and financial goals. Louisa is an experienced speaker, financial commentator, mortgage broker industry representative and small business advocate.       

Connect with Louisa on Linkedin.      

Louisa Sanghera is a Credit Representative (437236) of Mortgage Specialists Pty Ltd (Australian Credit Licence No. 387025).    

Disclaimer:This article contains information that is general in nature. It does not consider the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This article is not to be used in place of professional advice, whether in business, health or financial.      

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