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What happens to your borrowing capacity if the interest rate goes up?
A 1% increase in interest rates reduces your borrowing capacity by about 10%.
First of all, don't panic! Carla Nesci, Lending Specialist at Wealthi says:
"It can be a great time to apply for a "pre-approval" from the bank and ensure interest rates for 3 months until you find it is your next investment property or your first home."
In this clear example video, Carla explains the variation and gives you a better understanding of your finances in a rising interest rate environment.
As we always say in Wealthi, each situation and experience is different, so don't hesitate to reach out to our Lending Specialist team for free advice: