A whole year of hurt
The RBA has been hiking rates for a full year, and it hurts everyone.
5 April 2023
- The average mortgage rate has moved from 3.02% in May 2022 to 6.12% on 1 April 2023
- The average monthly repayment on an $600,000 mortgage has increased by $1,058 a month to $3,910 in the same period
Tuesday 4 April 2023: Research by comparison site Mozo shows that mortgage holders have been slugged with an increase of around $1,000 in their monthly repayments over the past year.
That adds to well over $10,000 extra since the Reserve Bank of Australia exploded out of the blocks with its first rate hike last May, just to keep a roof over the family’s head.
After an unrelenting ten consecutive decisions to raise their rate, totalling 3.50 per cent, the RBA paused for breath at its meeting today, to take stock.
However, that is cold comfort to borrowers, who know there is still pain to come as the full impact of the RBA’s decisions filter through to their wallets.
Peter Marshall, Mozo’s banking expert, knows how much these rate rises are hurting a majority of people.
“The increase in interest rates is a massive part of the cost of living crisis facing every Australian’, he said.
“No one is immune, this is affecting homeowners and renters alike, as landlords are facing rate hikes on their investor loans and passing on the pain’’ added Peter.
“For many the pain isn’t over, even though the RBA paused today, the rate changes are still filtering through to existing borrowers. So, it is worth calling your lender now to ask them what they can do on your rate, and using Mozo’s comparison site to see if you can get a better deal as a new customer at another lender.
“Mozo's latest research shows that two thirds of borrowers either haven’t considered calling their lender about a lower rate, or didn’t realise they could haggle.
“Our advice is ‘don’t be a hostage’, in mortgages loyalty does not pay!”
Notes: Rates correct as at 4 April 2023.
Vanessa Puli: email@example.com 0416623377