We watch with anticipation as interest rates rise and fall. The impact of which affects everyone who has a home loan, term deposit or other deposit accounts. Let’s have a brief look at how it affects each finance platform.
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.
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.