Your mortgage could increase by $500+ per month – here’s why

Posted: 27 January 2022 5:18 pm
News
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Westpac predicts 6 mortgage rate rises before Easter 2024. If they're on the money, how much could this cost you?

And more importantly – is there anything you can do about it?

The short answer is yes. You can get in front of these predicted variable rate rises by locking your mortgage into a fixed rate loan, pronto.

Westpac aren't alone in changing their rate predictions: on our RBA panel of 40 economists and property experts, almost half of them expect interest rates to increase sooner than later.

If Westpac's prediction of 6 rate hikes does come true, how much would you expect to pay for your home loan?

I ran the numbers on principal and interest mortgages, and here's the result:

Mortgage valueCurrent monthly repayment at 2%Future monthly repayment at 3.4%Difference per month / year
$300,000$1,109$1,331$222 / $2,664
$500,000$1,849$2,218$369 / $4,428
$750,000$2,773$3,327$554 / $6,648
$1,000,000$3,697$4,435$738 / $8,856

Source: Finder's home loan repayment calculator (click to run the numbers on your own mortgage)

Fixed rate loans are already starting to rise, so if you're keen to lock in a good rate ASAP, here are a few of the offers available right now:

1 - 1 of 1
$
years
Name Product Interest Rate (p.a.) Comp. Rate p.a. Fees Monthly Payment

Ubank Own Home Loan Fixed P&IHome 3Y Fixed≥ 20% Deposit

Ubank Own Home Loan Fixed
4.25%
2.96%
  • App: $0
  • Ongoing: $250 p.a.
$739
A competitive fixed rate loan from an online-only smart bank. Requires a 20% deposit.
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Compare up to 4 providers

Moral of the story? If a fixed rate home loan suits you, take steps to lock it in ASAP. Check out the latest fixed rate home loan offers now.

Find the right home loan now

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