June Interest Rate Rises

Orchardlending08 Jun, 2022Finance

With a day since the dust has settled, the true measure of the back to back, 50 basis point interest rate rise is being assessed. With some savers looking forward to higher interest rates on savings accounts, most borrowers will see a noticeable nudge up in their monthly repayments. The rate rises would amount to around a $133 a month extra on a loan worth $500,000 over 25 years, and $265 a month on a loan worth $1 million ? on top of the previous month?s increase. With surging basic good costs such as petrol, groceries, and other CPI indexed items (insurances, tolls, HECS) this is sure to be felt by the wider economy. However some steps can be taken to counter the assumed future rises.