So how do you keep your home loan repayments manageable in a rising rate environment?
Shop around.
Banks and non-bank lenders fight over customers like seagulls on a chip in Australia’s highly competitive home loan market.
“While rising rates have meant some borrowers have seen an increase in their repayments, rate rises have also triggered competition in the lending market, which have created more interest-saving opportunities for borrowers,” reports Domain.
Savvy borrowers know that it pays to shop around if you’ve had the same home loan for a few years or more.
There are costs involved in refinancing, Domain reports. This can include discharge fees of up to $400 and property valuation fees of up to $600.
If you have a fixed rate loan, you will need to pay a break fee which can be pricey depending on how long you have left on your loan.
So whatever your circumstances – if you’re concerned about rising rates, or simply curious to know how much you could borrow or save – make sure you shop around and get independent advice to identify your best options.
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