The Reserve Bank has announced a 0.25% increase to the Official Cash Rate (OCR), taking it to 2.50%.
Focus is still on bringing inflation back under control, which they are expecting to ease over the coming year. While the economy is gradually picking up, it is clear that they’re taking a cautious approach to make sure that progress continues.
An OCR increase is never the headline homeowners hope for, but it’s a timely reminder that staying on top of your mortgage can make a real difference. Being proactive, and making even small changes along the way, can have a meaningful impact over the life of your mortgage.
What does this mean for homeowners?
👉 If you’re on a floating rate, your fixed rate is coming up for renewal in the next few months, now is a great time to review your options.
👉 If you’re fixed rate isn’t due to expire just yet, there’s no immediate change to your repayments. However, it’s worth planning ahead rather than waiting until the last minute. Starting the conversation early gives you more time to explore your options and make informed decisions.
The good news? Not all mortgage rates are moving in the same direction. Some shorter term fixed rates have edged slightly higher recently, and some longer term rates have eased as wholesale markets have settled.
Every lender is pricing differently, so it’s worth reviewing what’s available rather than assuming your current bank is the best option.
Will there be more increases?
Possibly.
The Reserve Bank has signalled that further OCR increases may be needed, but any future decisions will depend on incoming inflation and economic data.
Our Advice: Don’t wait till last minute.
Whether you’re refixing soon, thinking about making extra repayments, or simply want to know if your current situation is still the right fit, having a conversation early gives you more options and more time to make informed decisions.
👉 Unsure of what to do next?
Your Mortgage Supply Co Adviser will help you navigate your options and find the right path forward.
