Home loan payments will jump to the highest on record, as rising interest rates and high debt put pressure on household budgets.to cause consumers to cut spending and to help cool inflation next year.Reserve Bank of Australia data show interest and principal payments as a share of household disposable income are already around the previous high recorded in 2010.
Financial markets are pricing in a peak cash rate of about 3.75 per cent by mid-2023, according to Australian Securities Exchange cash rate futures.A variable rate borrower with a $500,000 mortgage will be paying an estimated $760 a month extra since the RBA’s seven straight interest rate increases, according to RateCity, and potentially more than $1000 extra if future anticipated rate increases occur.
Although the RBA cash rate is well below the 4.75 per cent recorded in 2010, mortgage debt is much higher. However, an extra $270 billion in household savings during the pandemic has given borrowers, particularly higher income earners, financial buffers to drawn on.ANZ economist Adelaide Timbrell said the savings buffers and low 3.4 per cent unemployment rate would help most households ride out the financial squeeze.
“We’re expecting a slowdown in spending and continued reduction in house prices to be far sharper than changes in the [home loan] arrears rate because most people have jobs.” “The majority of owner-occupiers with variable rate loans have the ability to adjust to a period of higher interest rates and inflation, in part due to their substantial savings buffers.”
Source: Loan Digest (loandigest.net)
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Money Matters: Is surge pricing legal when people are trying to get home?Some consumers have labelled the practice of ramping up prices during high demand as 'price gouging'. 9News What do you mean!?!?!?… THAT IS WHAT IT IS!! Some consumers? What is this a new tik tok trend all of sudden? supply & demand its not rocket science, if its not worth it don't buy it choice is yours
Source: 9NewsAUS - 🏆 10. / 72 Read more »
Source: FinancialReview - 🏆 2. / 90 Read more »
Aussie academic 'on his way home' after release from Myanmar prisonAfter 650 days imprisoned in Myanmar, Australian academic Sean Turnell is in "remarkably good" spirits, speaking about his time in jail and even cracking jokes. can you get your radical left political activist nickpearson87 to up dates us on the Hunter / Joe Biden investigation Australian? Indigenous or non-indigenous? From the European or Anglo or Welsh or Russian or Caucasian descent community of White Australians?
Source: 9NewsAUS - 🏆 10. / 72 Read more »
Source: abcnews - 🏆 5. / 83 Read more »
Source: theage - 🏆 8. / 77 Read more »
Source: theheraldsun - 🏆 17. / 59 Read more »