MoneyQuest’s March Cash Rate Update – Rising Interest Rates and Our ‘Living Expenses Calculator’

Autumn is upon us, a season that is generally synonymous with cooler temperatures and falling leaves. But one thing that is not cooling or falling are interest rates.

It was announced today that the cash rate is on hold once again, so variable interest rates continue to remain quite flat. But for how long, we don’t know.

Meanwhile, fixed interest rates are heating up quicker than steel on a summer’s day, which has prompted a few of our clients to reach out and start asking about whether they should be fixing their home loans.

If you are starting to feel a little bit concerned about the impact of rising interest rates, we recommend considering the following:

  1. If you want certainty and consistency around your mortgage repayments, then moving from a variable rate home loan to a fixed rate home loan might be the way to go. Even though fixed rates are rising, fixed loans provide peace of mind and help with budgeting and planning for the future.
  2. If you are not quite sure about locking in a fixed rate, another great option is a split loan. This means that part of your loan remains on a variable rate, and part of your loan is converted to a fixed rate. In horse racing terms, it’s similar to placing a bet each way. Split loans provide a level of reassurance but also allow for some flexibility.
  3. However, the most important decision you have to make is the one to go and see your local MoneyQuest mortgage broker. They can assess your specific situation and look at different lender options for you, particularly if you are considering splitting your loan.

And finally – a message for home buyers and homeowners out there that are still feeling a little nervous about how rising interest rates might impact their household spending.

Here at MoneyQuest we have a custom designed ‘Living Expenses Calculator’ that provides an overview of your household spending and helps to identify areas where you might be able to save. Our franchise owners are more than happy to walk you through this tool, free of charge, to help you plan your household spending.

So don’t be shy, reach out to your local MoneyQuest finance specialist today for home loan help and a spending calculator that’s a cut above the rest.

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