Rate Rises

Interest rate rises are part of the economic cycle and are expected to occur often. The Reserve Bank of Australia has the authority to move the cash rate, which is the benchmark that lenders use to borrow against each other, and it is aimed to control inflation. Lenders also use the cash rate to determine their interest rate rises. For variable mortgages, interest rate rises do not usually increase by big jumps, they most commonly rise by 0.25 percent. Fixed mortgages and fixed investments such as term deposits can be much more irregular and experience heavier rate rises with larger jumps and also less frequent due to the size of the jump. Other deposit accounts usually follow the cash rate much closer and experience rate rises just as often.

Here are some of the lowest variable rate mortgages in the market to help you land your new home.

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