A new survey by ME Bank reveals that just more than one quarter of Australians - 26 per cent - will make paying off their mortgage their main financial goal in 2018.

The findings of the survey suggest borrowers are concerned that interest rates could rise during the year, according to ME.

Source: ME.

Among borrowers, 62 per cent of respondents said they expect their lender to increase mortgage rates this year.

And more than half of borrowers - 56 per cent - said there would be an 'adverse impact' if rates were to rise only 1 per cent. A total of 43 per cent of respondents said they would have to spend less. And 27 per cent of investors said they would sell their investment property if rates were to go up only 1 per cent.

ME money expert Matthew Read said financial markets are expecting rates to rise in 2018, and borrowers should be aware that rates are at record lows and will eventually go up.

“Repayments could increase by $50 for every 25 basis point rise on a $400,000 loan,” he said.

He advised borrowers to make repayments, to check they have a competitive loan rate, and consider fixing their loan rate.

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It pays to haggle on your mortgage

Are Australians too relaxed about their mortgages?

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