Mortgage News

The RBA today has lifted interest rates another 25 base points to a total of 4%. This comes on top of the three consecutive raises from late 2009 equating to more struggles ahead for mortgage home owners. They are facing on average another $46 per month in repayments. ($300,000 loan over 25 years) The Board’s decision was based upon growing projected  trends in inflation over the coming year. The move will test the some 250,000 First Home Owners who took up the Governments extended incentives plans over last  year. The RBA stated it was in response the strong bounce back economy it saw emerging from the slump of the last few years.

Simon Reibelt from Oasis Home Loans Northern Beaches stated that the interest rate rise would not be the last this year. It is expected that the RBA will target inflation as our economy grows ever stronger. Anyone who was feeling the pressure of rates rises should consider looking at different lenders and possibly refinancing to lower other debts and their current home loan.

(Image and story drawn from SMH Business)