interest rates in australia

Interest rates are on the move

The Reserve Bank of Australia has increased the nation’s cash rate by 25 basis points to 0.35% marking the first rate rise in more than 11 years.

Inevitably this means mortgage repayments will become more expensive for thousands of Australians who have never experienced a rate rise.

With the banks passing on the increase in full, the average borrower with a $500,000 loan and 25 years remaining will see their repayments rise by approx. $65 per month. Someone with a $1,000,000 loan will see their repayments rise by approx. $130 per month.

Borrowers do need to be aware that the cash rate is expected to continue to rise and this will lead to further increases in loan repayments.

Although the interest rates are increasing, there are still opportunities to potentially obtain lower interest rates than what you are currently paying. For any borrower that hasn’t reviewed their rates in the past 12 months, now is the time to do so as there may be a bank out there who will offer a better deal than your current bank to secure your business.

For those clients who don’t currently have a loan but are looking to enter the property market, as interest rates continue to increase the loan amount that a client will be able to qualify for will reduce.

If you would like to have a chat regarding the options available to you, please call Brock or Rob on 02 9545 0444.