Managing increasing interest rates

February 13, 2023 by Con Zagas

The first interest rate increase for 2023 was announced last week, with the RBA increasing their cash rate to 3.35%. As you can expect, lenders have forwarded this to their customers, with many increasing their rates by .25%.

What can you do to manage this?

1. Contact your lender and negotiate your rate.
   If you’ve been with your lender for some time, chances are that you're paying more than you need on your rate. Contact your lender and negotiate your rate. Lenders reduce rates for new customers but keep existing customers' rates the same. This results in you paying more for your mortgage than you need. If you need this looked at sooner, get in touch.
   
   
2. Contact your broker to find better deals elsewhere.
   No one is immune to the RBA increases, and all lenders will generally pass the rate increase to their customers. Still, in a highly competitive market, some lenders will be lower than others, so shopping around is essential. There is a good chance another lender will have a lower rate or more suitable product that you can refinance.
   
   
3. Keep your rates low
   The rate increases may still come, but being proactive and keeping your rate low through negotiation or refinance will buy you some time before rates get too high.

If you're looking for other strategies to help you manage your mortgage, please get in touch today. We are happy to schedule an appointment and chat about your options.

If you are experiencing any financial difficulty, please get in touch with your lender asap and have a chat with them. They can assist you in finding a solution to help you in this situation.

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