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What the rising cost of living means for the next six months

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“It’s a very different environment than a year ago, and nothing like the pre-pandemic economy.”

There are some signs that the offshore factors behind the sharp rise in costs are beginning to subside, although for fuel prices the recent oil price slump will be complicated by the end of the oil duty cut. excise duty on fuel. Inflation is not expected to peak until the end of the year, so weak spots will continue to be seen in the cost of groceries, travel, fuel, furniture and household items.

Stick to a budget

Although this is not an easy time for many, households can take steps to better cope with the rising cost of living.

When costs rise, it’s more important than ever to have a budget in place and stick to it. One way to check that your budget is on track is to look at your bank statements from the last few months or use an app that does the analysis for you.

“Households need to look at all the expensive items that feed into the budget, including your home loan,” Robertson says.

A home loan health check is a great way to check if the loan is still fit for purpose, whether it’s a fixed or variable rate. “Your arrangements may have changed, or you may be renting and considering switching to a home loan to take advantage of the various government grants and programs available at this time.

“Ask yourself if it’s possible to cut back on discretionary spending or be smarter about how you save and spend. Costs are on the rise, so shopping around makes more sense than ever. Ultimately, make sure you have a plan and regularly check that you’re sticking to that plan,” he says.

Don’t succumb to loyalty taxes

If you’re considering refinancing your home, be clear about your motivation to move lenders, independent finance and real estate expert, says Peter Boehm.

“For example, is it to get a better rate, a better product with more flexibility, or are you looking for the certainty of reimbursement that a fixed rate product can offer?” When looking for a lender, consider their reputation, breadth of skills and experience, honesty, product range and quality of service, he says.

Home loan products also vary. “There are pros and cons to the myriad of products available, so you should fully explore what they are and how the terms and conditions of the loan might affect you before signing on the dotted line,” Boehm says.

The lender is obligated to explain them to you, but if you don’t understand something, seek independent advice, he says.

And finally, set up another household savings.

Planning meals, bringing a list to the supermarket, removing food delivery apps to avoid temptation, and renegotiating with other service providers for a better deal can help reduce household spending.

With interest rates on the rise, there’s never been a better time to review your home loan. A Bendigo Bank home loan health check is a great way to ensure that your home loan is still the right one for you and meets your current needs.

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