The Reserve Bank of Australia (RBA) has today increased the official cash rate by 0.25%.

This was widely expected given the rising inflation figures and while no one can predict future movements with certainty, current market expectations suggest there may be further gradual increases over the next year as the RBA continues to manage inflation. That said, decisions will remain data-driven, and conditions can change.

What this means for anyone on a variable home loaninterest rate

Lenders are expected to pass on this increase to variable home loan interest rates over the coming month. As each lender makes a decision on how they will respond to this rate increase, they will notify customers on a variable loan rate of the increase rate, the date this will take effect and what the new minimum repayments will be.

Please ensure if you are on a variable rate, any reoccurring repayments for your loan are updated to the increased amount and funds are available in your account to cover the increase.

How we can help to minimise repayments.

Our priority is always to ensure you’re in the best possible position with your home loan. In light of this change, we can assist with:

• Reviewing your current loan to ensure it remains competitive
• Comparing lenders to see if a better rate or product is available
• Restructuring your loan to reduce repayment amounts, including:

 
1. Debt consolidation options
 
2. Adjusting your loan term
 
3. Reviewing fixed vs variable rate options for certainty of future repayments

Even small changes can make a meaningful difference to yourrepayments and overall financial position. Please get in touch if you would like us to review your loan or discuss strategies to manage rising rates.

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View the full RBA statement here

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