Interest rates are back where they were before Covid. For new home loan clients that caught the very lows of the rate last year, the new repayments will require adjustment.
Example only
For a lot of clients carrying around a $900,000 home loan, every .5% increase could mean around $100 more per fortnight.
| Interest Rate % | 3.50% | 4.00% | 4.50% | 5.00% |
| Term (Years) | 25 | 25 | 25 | 25 |
| Borrowing | Fortnightly | Fortnightly | Fortnightly | Fortnightly |
| $700,000 | $1,617 | $1,704 | $1,795 | $1,888 |
| $750,000 | $1,732 | $1,826 | $1,923 | $2,022 |
| $800,000 | $1,848 | $1,948 | $2,051 | $2,157 |
| $850,000 | $1,963 | $2,070 | $2,179 | $2,292 |
| $900,000 | $2,078 | $2,191 | $2,308 | $2,427 |
| $950,000 | $2,194 | $2,313 | $2,436 | $2,562 |
| $1,000,000 | $2,309 | $2,435 | $2,564 | $2,697 |
| $1,050,000 | $2,425 | $2,557 | $2,692 | $2,831 |
| $1,100,000 | $2,540 | $2,678 | $2,820 | $2,966 |
| $1,150,000 | $2,656 | $2,800 | $2,949 | $3,101 |
| $1,200,000 | $2,771 | $2,922 | $3,077 | $3,236 |
| $1,250,000 | $2,887 | $3,044 | $3,205 | $3,371 |
Are there options if these repayments mean hardship
As always we are more than happy to chat, for some clients a loan term extension can be possible. This will lead to a larger interest cost in the long run. For more extreme situations we can work with the lender to give some reprieve temporarily, in case of loss of work or time needed to sell a house.
