The Reserve Bank’s rate increases don’t affect those with Finance already in place for Medical Equipment, because asset finance is based on a fixed rate over a fixed term. But, those of you who have variable or floating facilities for other needs, such as real estate, are now incurring increased costs. Capped facilities are also affected, unless the cap is low, which is unlikely. So, what is the real impact on your cash flow?
For each increase of 25 points, you’ll pay $100-200 per month more for every $1,000,000 financed. That may not seem a lot, but if you’re of the opinion that rates will continue to rise, as are most of the ‘pundits’, you may want to consider fixing now.