The Reserve Bank has met again and decided what is best for the economy (and inflation) by raising, lowering or keeping steady interest rates. The average homeowner doesn’t give two hoots about the economy, only how interest rate movements will affect them personally.
Some people are living so close to the edge that even a 0.25% increase in interest rates will force them to do something drastic. Like sell their home.
Don’t view interest rates in terms of what they will be doing in the short term. Look at where they could be in the medium and long term, then evaluate how this will impact on you. If you could not handle rates rising again, please get in touch with your lender now. Right now. Give yourself the best chance to hold onto your home by sorting it out early. And if the figures tell you that you need to sell, remember that your family and mental health are worth much more than 4 walls and a roof.
Hope for the best, prepare for the worst – it’s a great philosophy to live by.