Two and three-year mortgage rates predicted to rise

With this week's expected increase in the Official Cash Rate (OCR), the third increase this year, it's likely that banks will pass the increase on to fixed-term mortgage rates according to one mortgage broker.

John Bolton, principal of mortgage broker Squirrel says that banks have been competing away their two and three year fixed term margins to the extent that the next OCR increase is definitely going to get passed on in the one, two, three-year mortgages rates. Two-year rates would be above six per cent.

With this week’s expected increase in the Official Cash Rate (OCR), the third increase this year, it’s likely that banks will pass the increase on to fixed-term mortgage rates according to one mortgage broker.

John Bolton, principal of mortgage broker Squirrel says that banks have been competing away their two and three year fixed term margins to the extent that the next OCR increase is definitely going to get passed on in the one, two, three-year mortgages rates. Two-year rates would be above six per cent.

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