So far, the Reserve Bank has increased the OCR by only 0.75%, from 0.25% in Oct ‘21, to 1.00% just recently. Despite this, fixed rates have already increased as much as 2.0%.
Most of the banks’ economics teams are forecasting the OCR to lift as far as 3% by next year, but will fixed rates further increase in line with this anticipated change? Not likely, as most of this increase has already been absorbed in the current rate settings.
However, floating rates and one year rates may still have a way to increase.
Projected OCR (cash rates)
|Bank||Mar 22 (now)||Sep 22||Mar 23||Sep 23|
This is ANZs latest projected rates (please note that markets are very volatile currently, and are subject to constant change and review)
ANZ’s Forecasted Customer Rates
|Fixed term||Mar 22 (now)||Sep 22||Mar 23||Sep 23|
|1 Yr fixed||3.90%||4.50%||4.90%||4.90%|
|2 Yr fixed||4.55%||4.90%||5.00%||5.00%|
|5 yr fixed||5.30%||5.30%||5.50%||5.50%|
What does this mean for your household’s budget?
In light of these changing costs, for any upcoming fixed rate rollovers, your household probably does have more to consider this year, such as:
What’s the best option for me?
Because your financial situation is unique, it’s important that you have the right team of professionals, asking the right questions, in order to advocate for you.
Our expert mortgage team can offer tailored advice that will help to minimise the impact interest rates will have on your finances – we are focused on getting the balance right between saving money and minimising overall interest costs, and affordability.
Get in touch with us today to book a free, no-obligation mortgage review.
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