Interest rates play a major role in your mortgage repayments, and even small changes can have a noticeable impact. Whether rates are rising or falling, it’s important to understand how they affect your loan and what you can do to stay ahead.
If you have a variable rate loan, your repayments will fluctuate with the market. When rates go up, so do your monthly payments. When they drop, you’ll pay less. Fixed rate loans, on the other hand, offer stability by locking in your rate for a set period—protecting you from sudden increases.
Some borrowers opt for a split loan, combining fixed and variable components to balance flexibility and certainty. If you’re unsure which option suits your needs, a broker can help you assess your financial situation and choose a strategy that aligns with your goals.
Monitoring interest rate trends and reviewing your loan regularly ensures you’re not paying more than you need to. And if your current rate is no longer competitive, refinancing might be worth considering.