Ratewatch
Variable interest rates
If you have a variable rate home loan, interest rates movements are the biggest single impact on your mortgage repayments each month. When the Reserve Bank lifts official interest rates by 0.25%, the interest rate on your variable rate home loan will usually rise by roughly same amount. Every bank and lender is different, so you need to check! The interest rate increase usually adds about $16 dollars a month to loan repayments for every $100,000 in outstanding borrowings on your mortgage over 25 years.
Fixed interest rates
Fixed interest rate are influenced by completely different market forces than variable interest rates. Variable interest rates are driven by Reserve Bank policy; fixed interest rates are driven by the views of those that put their money out to the fixed rate wholesale market.
Find our how interest rate movements affect you
For more information on how interest rate movements affect your specific situation including your current loan, or to find out about the loan that is in your best interest, talk to a mortgage broker or call us any time on 13 LOAN (+61 2 9249 3739).
