Here are three key things you can do to ensure interest rate rises don’t impact your ability to enjoy Christmas and New Year.
RBA rates and protecting your household budget this Christmas
It’s no secret that the Reserve Bank of Australia (RBA) has closely monitored the housing market this year. And until the recent bout of rate rises, it has been more than eleven years since the RBA lifted interest rates. Subsequently, it’s been a long time without any worries about how rate rises will impact the household budget for many homeowners. But with Christmas just weeks away, impending rate rises are a concern to many sellers, buyers and homeowners.
Review your expenses and make cuts where necessary
Now is the time to sit down and thoroughly assess where your hard-earned money is going each month. Are there any areas where you can cut back to free up some extra cash? For example, this could be as simple as eating out less often or switching to a cheaper broadband plan. Every little bit counts.
Make a budget and stick to it
Once you’ve reviewed your expenses, it’s time to create a realistic budget. Doing so will help you stay on track financially during the festive season and avoid overspending. Be sure to include all of your regular costs, such as mortgage repayments, utility bills, and groceries, as well as any one-off costs, such as Christmas gifts and holiday travel.
Invest in a fixed-rate home loan
If you’re worried about interest rates rising, then now might be the time to consider fixing your home loan rate. Fixing rates will give you certainty about your repayments for a set period which can be helpful in budgeting for other costs. Just be sure to weigh the pros and cons before making a decision – speak to your mortgage broker, financial planner or bank for more information.
