Aaron WhybrowGeneral Manager, Strategic Mortgage Broker

Watch the full episode https://youtu.be/S0rbKOZL-OI #bagpipingmortgagebroker

Name: Watch the full episode https://youtu.be/S0rbKOZL-OI #bagpipingmortgagebroker
Uploaded: 2023-01-28T01:21:11Z
Channel: Aaron Whybrow
Description: Transcript excerpt from a YouTube video discussing how increases in fixed mortgage rates affect repayments for a $500,000 mortgage. Speakers compare…

28 Jan 2023

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Transcript excerpt from a YouTube video discussing how increases in fixed mortgage rates affect repayments for a $500,000 mortgage. Speakers compare previous low fixed rates (2.69%) to current rates (around 4.54% for owner-occupied and 4.86–5.10% for investor rates) and quantify monthly and weekly payment increases.

Questions this video answers

$500,000

2.69%

$2,025.35 per month

4.54%

$2,545.32 per month

If someone has a $500,000 mortgage and they'd been on a really good fixed rate deal and then suddenly this change was going to come in, what's the difference in like their monthly or weekly mortgage payment.
Going to be a $500,000 loan at 2.69 is $2,025.35 a month. As that loan comes off a two year fixed rate, the remaining 28 years of that mortgage. One of the best rates that we've got today being the 30th of the 12 in 2022, is 4.54, which means if it's your own place, rate would be $2,545. 32, an increase of $519 a month. And if we go down the line of fixed rate on investor and we take the 2.69 and we jump up to the 4.86 or even 5.1 between that range at today, that would increase your repayments between $700 a month and $784 a month, which would translate down to about 161 to $181 a week increase in repayments on that mortgage overnight. That's what we've got to prepare for.