Quick fix would save money

If the Reserve Bank does increase rates by 0.25 per cent at its next meeting in November repayments on a mortgage of $500,000 will increase by $84 per month. Borrowers should consider fixing all or part of their home loan now as the banks will move quickly to pass on any increase in rates. Standard 3 year fixed rates for the major banks are around 7.80 per cent so fixing would save 0.77 per cent compared with the new standard variable rate which would be 8.57 per cent and even lower fixed rates can be found with other lenders. Variable rates for margin lending will rise to around 9.65 per cent and credit card rates will be as high as 20 per cent.

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