The Reserve Bank lifts interest rates for the seventh month in a row, taking the cash rate to 2.85 per cent.
Latest rise could tip borrowers into mortgage stress
Stephen Zeller, Compare the Market's General Manager of Money, is urging Australians to assess their financial situations as rates continue to rise. "Aussies with a fixed-rate loan due to expire by the end of 2023 can expect a median increase of around $650 in their monthly repayments," Mr Zeller says."In this market complacency kills."Do your research to find the most cost-effective way out of this turbulent time."Great offers that were there yesterday are gone today, so do your research and do it fast. Advertised rates are moving quick."
Mr Zeller says households with "decent buffers" should be able to ride out the rate rise but those with low liquidity buffers should be reviewing costs beyond their home loan. "Get into a habit of checking your budget and re-evaluating household living costs such as energy plans and insurances. But beware of the honey trap. It's vitally important to check the rate is competitive first before switching". "This might seem tedious and tiring but it's the best way to tackle high living expenses and get on the front foot of what could be a really challenging time into Christmas."
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