Australian borrowers have been urged to take a ‘home loan health check’ ahead of this year’s planned interest rate increases.
Alex Filipovic, a mortgage consultant at the South Australian Advertiser, said borrowers should also compare home loans and consider alternative mortgage deals in light of their overall circumstances.
“Interest rates are important, but they’re not always the whole story,” said Mr. Filipovic. “It’s best to look at your whole financial position in the process; personal loans, cost of living expenses, and credit card debt, something that a lot of people have at this time of year.”
Mr. Filipovic’s comments came after Dean Rushton, chief operating officer of Loan Market, highlighted predictions that the Reserve Bank of Australia will likely increase the cash rate by as much as six percent from the current level of 4.75 percent by the end of this year.
Mr. Rushton urged Australian borrowers to consider whether they should restructure their mortgages before conditions change.