What the rates rise means for home owners
THE recent interest rate rises from the big banks won't hit the hip pocket too much, but now is a good time to fix some or all of your home loan, according to a Hervey Bay mortgage broker.
Owner of Mortgage Choice in Hervey Bay, Peta Short said while the rates rise won't mean too much extra for the average home owner, fixing rates while they're still low could save you money in the long run.
Two of the big four banks have already raised interest rates, with Commbank and ANZ set to follow the hikes of more than 20 basis points for investor loans and up to 10 basis point for owner-occupiers.
So what does this mean for home owners?
Looking at a $300,000 home loan, the increase for the home owner adds up to about $20 extra a month.
Over 12 months this adds up to $240.
"I'm recommending to home owners to fix their home loans because often the fixed rate is lower than what you can get on the variable rate," Ms Short said.
Ms Short also recommends home owners check in with their current rates and get professional advice on the best option with the current market.
With house prices still very affordable on the Fraser Coast, it's still a good time to buy.
"It's certainly a lot lower than the capital cities and larger regions," Ms Short said.
It's also a good time to have a rental property.
"You're likely to get a higher rental return because the demand is outstripping the supply," she said.
From this Friday, NAB and Westpac will move to the same standard variable rate for owner-occupiers of 5.32 per cent per annum. CommBank's current rate is 5.22 per cent, and ANZ's is 5.25 per cent, giving them 10 and seven basis points of headroom to move, respectively.
Similarly, NAB and Westpac's standard variable rate for investors will this week move to 5.80 per cent and 5.79 per cent respectively. CommBank's current rate is 5.56 per cent, and ANZ's is 5.6 per cent, giving them up to 24 and 20 basis points.
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