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The era of really low borrowing rates is sadly over. Planning ahead is a good idea because rising interest rates are predicted to continue over the next 12 – 24 months.
There’s a good chance the loan you currently have is no longer right for you. Worse still, your interest rate may no longer be competitive.
Borrowers on a variable rate, expect your interest rate to go up straight away. Within a day of the RBA’s latest announcement, all four major banks notified customers that they will be raising variable rates in line with the cash rate, and other lenders will mostly followed suit.
Borrowers who locked in record-low fixed interest rates in recent years are likely to face a substantial increase in mortgage repayments when your fixed terms end and you inevitably roll onto the lender’s standard variable rate.
Higher interest rates will translate to higher monthly repayments, so some budgeting might be in order.
BrokerCo Pty Ltd ABN 34609806831, Australian Credit Licence 509361
The information contained on this web site is of a general nature only and is not to be taken in any way as specific advice for individual circumstances.
COMPARISON RATE WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. The comparison rates are based on a loan amount of $150,000 over a loan term of 25 years.
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