Those of you with Floating Home Loan's will be feeling a little bit of extra pain with the increase in the Official Cash Rate today by .25% to 3.25%. We're already getting notifications that the floating rate will be increasing at almost all lenders by .25% which will see the advertised variable rate at around 6.50%.
(If that is the rate you're paying, get in touch with us. You should be getting a discount and we can arrange this with you very easily to save some money)
That increase will see you paying around $20/mth more for every $100K you have on floating. Factoring in the previous rises of .50% that's a total of around $60/mth more than you would have been paying last Christmas.
We advise most of my clients to have less than $50K exposed to the floating rate, depending on their financial situation, but if you've got over $100K on floating and don't see yourself repaying it soon then we would definitely recommend getting in touch to lock in a fixed rate. Discounted three year rates are still below the current floating rate so you won't be paying a large premium for the privilege of interest rate certainty.
The indication from Graham Wheeler today was that he would increase the OCR further this year so there will be further increases in Mortgage Rates.
With that in mind we would strongly recommend reviewing your existing loans to make sure you have a structure that is working well for you. There are still good discounts to be had and we can provide you with the best options available for this.Adam and the My Mortgage team