Home owners have been hit with a ninth-straight cash rate rise, following the Reserve Bank's decision on Tuesday.
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It may not come as a surprise for mortgage holders, some of which have become more proactive in the face of rising interest rates, searching for better deals and reassessing their budgets, one Canberra broker says.
The rise was in line with most experts' predictions.
In its monthly survey, financial comparison website Finder found 42 of 44 experts and economists expected the Reserve Bank of Australia to increase the cash rate in February.
The majority (91 per cent) correctly predicted an increase of 25 basis points, taking the official cash rate to 3.35 per cent.
First home buyer Victoria Joyce has been keeping a close eye on interest rate movements since paying a deposit for an off-the-plan property in November 2021.
Just over a year - and eight rate rises - later, Ms Joyce settled on her new Denman Prospect apartment last week.
"I was a little bit worried towards the end months [last year] because [the interest rates] kept going up," she said.
"Because I signed the contract early ... I didn't know when it was going to be built, I didn't know how high the interest rates were going to go before I settled."
Ms Joyce is expecting more rate rises and is confident she can manage them, saying her loan serviceability had been tested at an interest rate of 9 per cent.
But she would consider cutting back some spending if her repayments go beyond what she has budgeted for.
"I get Uber Eats a lot, so I'd have to probably cut back on that and actually do my grocery shopping," she said.
"My dog's food is really expensive, so I'd probably have to change to a different brand."
Home owners shop around for a better deal
Loan Market Canberra director Nitish Kumar said rate rises are coming as less of a shock and are driving people to look for a better deal on their mortgage.
"I think people are being a lot more proactive about it than they used to be - people would just stay in their home loan and not worry about it," he said.
"But we're getting a lot more inquiries about refinancing to another bank or looking at a cheaper rate at their bank at the moment.
"People are definitely starting to feel the repayment difference."
Mr Kumar said reassessing household budgets and cutting discretionary spending can be helpful but, ultimately, the biggest savings came from refinancing or requesting a better rate.
"We had a client last month save $12,000 a year in interest on an average-sized loan," he said.
"Their bank was just charging them 2 per cent more than what they could have been charging them, so we didn't even have to move banks."
Experts surveyed by Finder forecast the cash rate to peak at 3.75 per cent, but three in four panelists predicted the Reserve Bank will hold the cash rate in March.
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James Sheffield, head of home loans at ME Bank, expected more home owners will be shopping around for a better deal this year.
"I expect competition in the home loans market to continue. Refinancing will remain a significant driver of home loan activity given the large number of fixed-rate loans that are due to roll off by the end of this year," he said.
"Consumers are looking to save money wherever they can. In an increasing rate environment together with high inflation and living expenses, consumers will continue to look around for a good home loan deal."
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