Will official rates move up or down?

That’s still up for debate…but what is becoming more apparent is that an increasing number of people are exercising financial caution, whatever way the next rate decision goes.

And with day-to day-financial news dominating our TV screens, it’s not hard to see why.

So whether you ‘re an owner occupier, first home buyer or investor, every borrower should take some time now to evaluate their own financial position to protect themselves for whatever lays ahead.

Here are some simple strategies to consider:

OWNER OCCUPIERS: should review your budget to try and direct more funds towards your current mortgage repayments which will give you breathing space if rates rise – or if you need to carry out any necessary works on your property.

OWNER OCCUPIERS: should limit discretionary spending, particularly toward the end of the year period when budgets routinely blow out.

FIRST HOME BUYERS: should hold off on purchasing everything new to go with the new house and instead acquire household items as you can afford to pay for them – preferably in cash.  Don’t unnecessarily rack up additional debt.

FIRST HOME BUYERS: may want to consider taking in someone to rent a room and help you pay the mortgage. With rental demand still high and provided your living circumstances allow for it, this can be a viable option to help you meet budget shortfalls.

INVESTORS: shouldn’t take it for granted you will always have tenants to help you pay the mortgage. Have a plan B ready in case the property is untenanted for any period, such as having funds set aside to continue paying the mortgage or moving in yourself if your situation allows for it.