When the Reserve Bank lifts the official cash rate, it is often referred to as an interest rate rise. This is because lenders generally follow the Reserve Bank’s cash rate movements so when the cash rate increases, most home loans will also experience an interest rate rise.
An interest rate rise will affect your home loan repayments if you have a variable mortgage but if you have a fixed rate, you will continue paying that rate until the fixed period ends. Then your mortgage will revert to your lender’s particular variable rate of whatever it happens to be at that time.
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