Rising interest rates could add $12,000 a year to $500k home loan: Corelogic
New Zealand may now be in “phase two” of the property market downturn, Corelogic says,
and rising interest rates could add $12,000 a year to the cost of a $500,000 home loan.
The Reserve Bank raised the official cash rate by 75 basis points on Wednesday, to 4.25%.
Corelogic economist Kelvin Davidson said the fact this had been anticipated by the banks
meant fixed mortgage rates might not move much straight away.
“However, floating rates will no doubt rise again shortly, and with more OCR increases in the pipeline,
fixed rates are unlikely to have peaked yet either.”