Interest rates have risen, and they are all biting. Is this a problem? It depends on your perspective.

If you are a homeowner, then yes, it will have a direct impact: Your mortgage payments will rise. Again, is this a problem?

If you bought your home some time ago when rates were higher and have not borrowed more, it is probably not a problem. You have been enjoying significantly cheaper money than you anticipated. Additionally, you have possibly paid back more principal than you normally would have, and you are now in a better position.

The reserve bank has released their latest update on the cash rate and dropped it earlier than expected. 

Some have suggested that this was expected by economists later in the year, others it's a surprise.

What does it really mean for you?