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With interest rates tipped to rise as the RBA begins to return the cash rate to a more normal level, homeowners are wondering what the best way to handle this new environment might be.

Many borrowers would never have faced a cash rate rise, given the RBA hasn’t hiked rates in over a decade. Fortunately, there are a number of things you can do to prepare for an interest rate rise.

Look for a lower rate

benefits of a mortgage broker

With national property prices growing strongly over the past 18 months, most of the country has seen strong growth in property prices.

However, not all locations move in sync with the national market and some areas will likely perform better than others in the short term. Fortunately, there are some key data points you can check that will determine how likely your new property could see growth in the years ahead.

Like all markets, property prices are a product of supply and demand. If you track what the supply and demand equation looks like in your area, you can get an indication of whether the buyers or sellers are in control of the market at any given moment.

Is a Bridging Loan Worth It

In the current market where property prices are trending higher and there’s a shortage of stock, upgraders and downgraders can find it difficult to get into a new property. For many, the age-old question of whether to buy first or sell first is more prominent than ever with the present housing market favouring sellers.

Fortunately, there is an option that can help in the form of a bridging loan. A bridging loan is a short-term loan that helps buyers purchase a property before needing to sell their current property.

In a perfect world, you would sell your property and then go out and find a new property. However, if the perfect home comes along beforehand, you might not want to miss out on the opportunity. That said, there are advantages and disadvantages to bridging loans.