The board of the RBA decided to lift the nation’s official cash rate by 25 basis points, taking the baseline rate from 3.1 per cent to 3.35 per cent.
On a $500,000 loan over 30 years, the hike will mean the average borrower will need to find an additional $81 to service their monthly repayments.
Since April 2022 – when interest rates were just 0.10 per cent – repayments on that same loan have increased by $969 a month or $11,628 a year.
Whilst not surprising, the 9th rate hike will inflict more pain on those already suffering with tight budgets and for those borrowers with fixed rates expiring this year.
Now is the time to be speaking with a Broker to check your options and plan for the future as there are still savings to be had to lessen the impact of the rate rises.
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