Home Loan Calculator

By Robert Carry

Australia's financial markets have responded to yesterday's comments by Reserve Bank of Australia (RBA) chief Glenn Stevens, in which he said there was a need to return interest rates to more "normal" levels, by predicting six further .25% hikes before June 2010.

 Speaking at a breakfast meeting in Perth yesterday, Stevens suggested that further hikes might follow last week's increase which lifted the cash rate to 3.25% from 3%. According to The Age Newspaper, Stevens' comments have prompted financial markets to tip seven interest rate rises in a row.

If the predictions are proved correct, the cost of servicing a $275,000 mortgage would increase by $335 per month when set against the 3% interest rate seen before last week's rate rise.


With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now