Budgeting experts warn homeowners of the soaring interest rates that would hit them hard should they stretch themselves to the limit.

• Homeowners who borrowed heavily to get on the property ladder will be in trouble if they adopt a “set & forget” mentality amidst rising rates.

• The warning follows figures from 5 leading banks that show fixed & floating rates have climbed in a year, & they’re expected to creep up further.

• Customers must focus on paying down debt & saving before they get into trouble, otherwise they’re advised to go & talk to their bank.

• The banks should abide by the RBNZ lending limitations that requires a 20% deposit for owner occupiers but in some cases that could be lowered.

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