An argument is being made for us look at the correlation of home loan rates and the Official Cash Rate, after looking at the average floating rate above the OCR.

The floating rate used to sit about 2 percent above the OCR, but over the last 15 years that has steadily increased to now sit around 4 percent.

And on a $1.1 million home that can be the difference between paying $1.1 million in interest payments over 30 years compared to $450,000 over 20 years.

The one pointing all this out is Managing Director of Nikko Asset Management George Carter who joined Mike Hosking.

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