said in a statement<\/a>\u00a0the RBA board expects to increase interest rates further over the period ahead, but it is not on a pre-set course.<\/p>\n\u201cInflation in Australia is too high, at 6.9% over the year to October,\u201d said Governor Lowe.<\/p>\n
\u201cThere has been a substantial cumulative increase in interest rates since May. This has been necessary to ensure that the current period of high inflation is only temporary.<\/p>\n
\u201cHigh inflation damages our economy and makes life more difficult for people.\u201d<\/p>\n
So how much have your mortgage repayments gone up in 2022?<\/h3>\n Unless you\u2019re on a fixed-rate mortgage, the banks will likely follow the RBA\u2019s lead and increase the interest rate on your variable home loan soon.<\/p>\n
Let\u2019s say you\u2019re an owner-occupier with a 25-year loan of $500,000 paying principal and interest.<\/p>\n
This month\u2019s 25 basis point increase means your monthly repayments could increase by almost $75 a month. That\u2019s an extra $835 a month on your mortgage compared to May 1.<\/p>\n
If you have a $750,000 loan, repayments will likely increase by about $110 a month, up $1250 from May 1.<\/p>\n
Meanwhile, a $1 million loan will increase almost $150 a month, up about $1,680 from May 1.<\/p>\n
How high are interest rates expected to go in 2023?<\/h3>\n Here\u2019s what economists from the big four banks are predicting in 2023:<\/p>\n
CommBank \u2013 no increases in 2023. Dropping to 2.60% by December 2023. \nNAB \u2013 rising to 3.60% by May 2023 and then staying steady. \nWestpac \u2013 rising to 3.85% by May 2023, then dropping to 2.85% by November 2024. \nANZ \u2013 rising to 3.85% by May 2023, then dropping to 3.50% by November 2024.<\/p>\n
Worried about your mortgage? Get in touch<\/h3>\n If you\u2019re starting to feel the pinch and are worried about what interest rate rises might mean for your budget in 2023, feel free to contact us today.<\/p>\n
Some options we can help you explore include refinancing (which could include increasing the length of your loan to decrease monthly repayments), debt consolidation, or building up a bit of a buffer in an offset account ahead of more rate hikes.<\/p>\n
So don\u2019t spend the holiday season sweating on next year\u2019s mortgage repayments \u2013 get in touch now so we can work out a plan together.<\/p>\n
Disclaimer:<\/strong>\u00a0The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.<\/p>\n","protected":false},"excerpt":{"rendered":"The Reserve Bank of Australia (RBA) has driven the cash rate up by another 25 basis points to 3.10%. Find out how much this final cash rate hike of the year has increased your mortgage repayments in 2022, and what you can expect in 2023. The good news? This is it. You can head into […]<\/p>\n","protected":false},"author":23,"featured_media":5200,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[110],"tags":[],"class_list":{"0":"post-5199","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-home-loans","8":"entry"},"yoast_head":"\n
Are we there yet? RBA hikes cash rate for eighth straight month to 3.10% · FinancialPlus Mortgage Broker Gold Coast<\/title>\n \n \n \n \n \n \n \n \n \n \n \n\t \n\t \n\t \n \n \n \n\t \n\t \n\t \n