Home buyers can withstand rate rises: Reserve Bank

, its sixth consecutive monthly lift. While the rate rise was smaller than expected, the bank said people should expect further increases in coming months.

For a household with a similar combined income and carrying $600,000 in debt, they have taken a $1000 a month hit, or 10 per cent of their disposable income. About 15 per cent of borrowers would suffer negative cash flow as the “combined burden of higher interest payments and the higher cost of essential goods and services exceeds their initial spare cash flows”.Forty percent of mortgagors would suffer a fall in their household cash flow of less than 20 per cent.

The bank revealed that in its contact with the broader community, there are early signs of some financial pressure.“Information from the bank’s liaison program also suggests that demand for a range of social and community services, including low-cost housing and food services, has increased of late,” it said.

swrighteconomy Morrison chose Tony's tradies to win during covid, propping up residential housing instead of investing in public infrastructure! Now comes the hurt!

swrighteconomy Scum. Filthy f**kin scum.

swrighteconomy They kept rates near the floor for so long so people could borrow to the hilt, kept printing money so asset prices would inflate to the moon. Now they’re trying to correct a fk up with panic rate rises, they come out and say this rubbish?! Sorry, but their credibility is shot.

swrighteconomy taking out a loan in 2021 when the RBA said rates would not change till 2024 means compensation

swrighteconomy All rushing in paying too much when rates had nowhere to go but up. Now reality and the norm kicks in they're screaming. When all was going up, encouraged by governments, it was fine. Well it's time to pay the piper.

swrighteconomy I am sure you can squeeze a bit more profit out of them; aye.

swrighteconomy So out of touch

swrighteconomy The problem isn't rising interest rates, which have been at absurd, historical lows for years, but that the return to a normal rate regime comes after an insane explosion in real estate asset prices which now make any return to sanity a financial time bomb.

swrighteconomy Corporate profits driving inflation but having a super profits tax is “impossible”

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