What To Action As Interest Rates Rise

For Current & Soon-To-Be Mortgage Holders
How it will impact you if you are:
Currently on a
variable rate
Currently on a
fixed rate
Waiting for
Variable Rates
The Impact

It is more than likely that your mortgage rate will be increased by your lender in the coming days by the rate rise amount

For every 0.25% increase on a $1m loan, repayments will increase by approx $130 / month (assuming P&I repayments)

NOTE: The exact repayment change will depend on your exact rate, how long you have left on your loan, type of repayments etc

What to Action

Your variable rate may no longer competitive, in which case you may consider refinancing your mortgage.

Consider fixing all or part of your loan. Your credit advisor can calculate whether this is the right decision for you.

Fixed Rates
the impact

If you are on a fixed rate, there will be no change to your rate or repayments. When your fixed rate expires it will revert to the variable rate offered at the time.

what to action

Consider the effect of a higher revert rate on your budget in future. As your fixed rate approaches expiry we’ll be in contact to discuss your options.

Waiting For Settlement
the impact

As rates increase it may decrease the amount your are approved to borrow. Chat to us about any concerns you have about your individual circumstance.

what to action

If you are considering a fixed rate, consider a “rate lock” fee to ensure you get the rate at the time of your application. Balance the costs and benefits here.