Proactively prepare for interest rate rises

Wow – we’re over a quarter of the way through 2022 and what a year it’s been.

Many of us are experiencing challenging circumstances, and there are likely to be more tough times ahead, with lots of media attention and talk about increasing interest rates, and the ongoing cost of living pressures eating into our budgets.

The Reserve Bank (RBA) has made the decision in their May meeting to increase its cash interest rates from 0.1% to 0.35%. Since the RBA’s decision variable interest rates have increased across the market.

Many of us may not have experienced interest rate increases on our mortgage before, as it hasn’t happened for many years. So what can we do to prepare for these increases?

1. Have a home loan? Don’t stress, we are here for you.
   Have a chat to your MyState Bank lender or broker. Do a home loan health check and discuss your situation. Your lender or broker can suggest options that best align with your circumstances.
2. If possible, put some extra cash in your offset account or on your home loan
   Making extra repayments is a clever way to prepare for increases to your minimum repayments and offers you a savings buffer in case an emergency pops up.
3. Change your repayment frequency
   Are you paid fortnightly? Consider changing your monthly payment to align with your pay cycle. This will result in one extra payment every 12 months – every dollar adds up.
4. Set a budget
   Start planning now so you’re not caught short living beyond your means. It’s always a good idea to track your income and be realistic about where your money is going every month. You should also use this time to assess your regular bills such as, council rates, electricity, mobile phone plan, car/home building/contents insurance, private health, subscriptions and break them down into your weekly budget plan.

Need some help?

If you would like to discuss your loan with one of our Lending Solutions Team members, please call our Customer Care Team on 138 001 and we can arrange it for you.

Want to work out what your home loan repayments will be? Check your mortgage repayments using our Home Loan Repayment Calculator here.