With interest rates potentially on the rise again - what can you do to protect yourself? 
 
For people seeking to build their financial future, there is no better way than the solid foundation of owning their own home, but how do you cope with the burden of increasing interest rates? 
 
The Reserve Bank of Australia hiked up interest rates three times in 2006 and this threat is still imminent in early 2007. So should you fix your mortgage or refinance with another lender to protect yourself from rising interest rates?  
 
If you need to budget and really can't afford higher rates, a fixed rate might be an option - at least it gives you security - or there is also the option of fixing part of your mortgage.  
 
However, if you decide to opt for the variable rate loan and only pay the minimum, your home loan repayments will go up if the rates go up in the future. A good way to budget and save is to make fortnightly instead of monthly repayments, thereby making an extra monthly payment per year. You can also pretend to be on a fixed rate and make higher repayments. Extra repayments can save you thousands of dollars in interest over time.  
 
As a member of The Institute, you can also receive a head start in terms of interest rates and discounts with the Chartered Accountants AMP Home Loan package. Members benefit from: 
 

• Discounts of up to 0.75% p.a.off AMP Banking’s classic variable and line of credit rate 
  
• Discount of 0.15% p.a.off AMP Banking’s Standard Fixed Rates  
  
• No application fee - saving you $350 
  
• No annual package fee, saving you an additional $330 per year 
  
• No monthly account keeping fees on Standard Variable and Line of Credit Loans.