this month\u2019s rate hike announcement<\/a>.<\/p>\nIn assessing when and how much further interest rates need to increase, Governor Lowe said the RBA board will be \u201cpaying close attention to developments in the global economy, trends in household spending and the outlook for inflation and the labour market\u201d.<\/p>\n
\u201cThe board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that,\u201d he added.<\/p>\n
How much could this increase your mortgage repayments?<\/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 very shortly.<\/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 $985 a month on your mortgage compared to 1 May 2022.<\/p>\n
If you have a $750,000 loan, repayments will likely increase by about $112 a month, up $1478 from 1 May 2022.<\/p>\n
Meanwhile, a $1 million loan will increase by about $150 a month, up about $1,980 from 1 May 2022.<\/p>\n
What happens if the cash rate increases further?<\/h3>\n The big four banks are forecasting that the cash rate will peak at either 3.85% (CBA\u2019s prediction) or 4.10% (NAB, Westpac and ANZ).<\/p>\n
Assuming you\u2019re an owner-occupier with a 25-year loan, here\u2019s how much more you could be paying each month if the cash rate reaches 4.10%:<\/p>\n
\u2013 $500,000 loan:<\/strong>\u00a0approximately $75 extra per rate rise = up $1135 from 1 May 2022, to a total of $3,470 per month.<\/p>\n\u2013 $750,000 loan:<\/strong>\u00a0approximately $112 extra per rate rise = up $1702 from 1 May 2022, to a total of $5,200 per month.<\/p>\n\u2013 $1 million loan:<\/strong>\u00a0approximately $150 extra per rate rise = up $2280 from 1 May 2022, to a total of $6,950 per month.<\/p>\nWorried about your mortgage? Get in touch<\/h3>\n There\u2019s no denying that a lot of households around the country are feeling the pain of these rate rises.<\/p>\n
There are also lots of people on fixed-rate home loans wondering just what options will be available to them once their fixed-rate period ends.<\/p>\n
Some options we can help you explore include refinancing (which could include increasing the length of your loan and decreasing monthly repayments), debt consolidation, or building up a bit of a buffer in an offset account ahead of more rate hikes.<\/p>\n
So if you\u2019re worried about how you might meet your repayments going forward, give us a call today. The earlier we sit down with you and help you make a plan, the better we can help you manage any further rate hikes.<\/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 increased the official cash rate for a tenth straight meeting, taking it to 3.60%. How much will this rate hike increase your monthly mortgage repayments, and how many more rate rises are expected to come? The RBA\u2019s latest move takes the cash rate to its highest level\u00a0since May […]<\/p>\n","protected":false},"author":23,"featured_media":5219,"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-5218","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-home-loans","8":"entry"},"yoast_head":"\n
Homeowners feel the pinch as RBA lifts cash rate to 3.60% · FinancialPlus Mortgage Broker Gold Coast<\/title>\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