The Announcement
The Reserve Bank of Australia has today announced it will lift the cash rate target by 25 basis points, taking it to a level not seen in 10 years. This is the eighth consecutive increase, and means the average borrower with a $500 000 mortgage would now have to find an extra $75 a month to meet repayments. While this is good news for those looking to save on their mortgage, it’s bad news for those who are already struggling financially
The last time Australia had an interest rate above 3 per cent was in October 2012, and this increase continues a long-term trend of the RBA hiking rates. The central bank has attributed the decision to lift the interest rate to continued economic growth, low unemployment and higher inflation. It’s likely that more hikes will be announced in the future as the Australian economy continues its upward trajectory.
How It May Affect You
For those looking to save money on their mortgage, today’s increase could be a welcome change. However, it’s important for borrowers to keep an eye on interest rates and ensure they’re getting the best deal possible. It’s also worth considering alternative options such as credit cards or personal loans if you’re looking to borrow money at a lower rate.
Not Seen In Ten Years
The Reserve Bank of Australia has once again increased the cash rate target, taking it to a level not seen in 10 years. While this is good news for savers, it could mean financial difficulty for those already struggling with debt. Borrowers should take this opportunity to review their finances and make sure they are getting the best deal possible. It’s important to do your research and consider all options before making any decisions. The Reserve Bank’s decision has the potential to have a significant impact on Australians, so it’s important to be mindful of how this could affect you.
The Team at Loan Location are always happy to help you obtain the best absolute, Home Loan product on the market.
Furthermore, if you need any further information about any of the above, then please enter in your details and we will be in contact with you shortly.
If you would prefer to book in with one of our senior mortgage brokers, then click the “book now” link
