Mortgage holders will have to fork out even more, with the Reserve Bank (RBA) announcing it will lift t
he cash rate by another 25 basis points to 2.85 per cent – its highest level since 2013.
Some Australians will see their mortgage repayments increased by more than $100 per month after this rate rise alone, putting more strain on already tight budgets during the cost of living crisis.
“This is another difficult day for Australians who are already under the pump,” Treasurer Jim Chalmers said shortly after the decision was handed down.
“This means Australians with a mortgage will have to find that little bit extra in their monthly budget to accommodate these interest rates.”
Sydney will see the highest rise, with an increase of $115 per month after the 25bp rise, based on the median loan size of $768,000, according to PropTrack data.
That’s followed by mortgage holders in the ACT, who will see a $105 increase in their monthly repayments and Melburnians, who will be hit with a $96 increase.
Those in Brisbane will see a $89 increase in their monthly bill, and those in Adelaide will have to fork out an extra $78.
Many homeowners are already feeling the strain, with Finder’s consumer sentiment tracker showing 30 per cent of homeowners were already struggling to pay their home loan each month.
Repayments on an average loan size of $509,422 will balloon to $906 more per month by the end of next year according to the data.
Click here to read the full article https://www.news.com.au/finance/money/costs/difficult-day-what-rba-cash-rate-rise-will-cost-you/news-story/78b6e892b3ee054e0954e24498a1b1fb
Comments