Mortgage Loan Interest Rates Explained by Senior Financial Adviser and Mortgage Broker Aaron McInnes

For the first time since November 2010, the RBA has raised its official cash rate – from 0.1% taking it to 0.35% yesterday on the 3rd of May 2022. This was above market expectations for a 0.15% hike and a bit closer to AMP’s expectation for a 0.4% move suggesting that the RBA appears to have partly accepted the argument that it had to do something decisive in order to signal its resolve to get inflation back down. 

Banks are likely to pass the RBA’s rate hike on in full to their variable rate customers and deposit rates will also start to rise. Fixed mortgage rates have already moved up in line with rising bond yields in anticipation of higher cash rates – doubling from record lows around 2% a year ago.   

In this video below, Milestone Financial’s Senior Financial Adviser and Mortgage Broker Aaron McInnes explains the differences of choosing a fixed rate and a variable rate mortgage.   

If you are concerned with how you should best manage your loans so that you are in a good financial position for the uncertainties ahead, please feel free to contact Milestone Financial at enquiries@milestonefinancial.com.au or 02 6102 4333 for a complimentary discussion with our professionals. 

Disclaimer: Please note that this video contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.

Milestone Financial Services Pty Ltd

(ABN 68 100 591 508) is an Authorised Representative and Credit Representative of AMP Financial Planning AFSL 232706