When rates rise, your borrowing power and your repayments can change. Understanding where you stand is the first step.
What just happened?
The RBA has lifted the cash rate again, taking it to its highest level in around 15 years. It’s the fourth increase this year, and if you have a variable rate loan, your lender will likely pass it on.
What it could mean for you
- Bigger repayments. On a $600,000 loan over 30 years, a 0.25% rise adds roughly $90 to $100 a month, and those rises stack up.
- Lower borrowing power. Lenders assess you at a higher rate than the one you actually pay, so what you can borrow may be down even if your income hasn’t changed.
Could switching lenders save you money?
Lenders don’t always give existing customers their best rates. Refinancing could mean a lower rate, reduced repayments or a loan structure that suits you better. It isn’t right for everyone, since fees and break costs matter, so it’s worth getting advice first.
Understanding where you stand is the first step
Our home loan specialists can review your options and help you find a strategy that works for you.
Get in touch with Finance@work today 🏡
General information only. It doesn’t take into account your personal objectives, financial situation or needs. Repayment figures are illustrative.