{"id":16011,"date":"2023-07-04T16:32:53","date_gmt":"2023-07-04T05:02:53","guid":{"rendered":"http:\/\/quantiphy.com.au\/oldbackup\/?p=16011"},"modified":"2023-08-17T14:26:38","modified_gmt":"2023-08-17T02:56:38","slug":"mortgage-holders-breathe-a-sigh-of-relief-as-rba-puts-cash-rate-on-hold","status":"publish","type":"post","link":"https:\/\/quantiphy.com.au\/oldbackup\/mortgage-holders-breathe-a-sigh-of-relief-as-rba-puts-cash-rate-on-hold\/","title":{"rendered":"Mortgage holders breathe a sigh of relief as RBA puts cash rate on hold"},"content":{"rendered":"<p>The decision to keep the official cash rate at 4.10% will be welcomed by homeowners around the country after monthly repayments increased by about $1,135 per $500,000 loaned (for a 25-year loan) since 1 May 2022.<\/p>\n<p>RBA Governor Philip said as interest rates had been increased by 4% since May last year, the Board decided to hold interest rates steady this month to provide some time to assess the impact of the increases.<\/p>\n<p>\u201cThe higher interest rates are working to establish a more sustainable balance between supply and demand in the economy,\u201d he said.<\/p>\n<p>However, Governor Lowe kept the door open for potential rate rises in the months to come.<\/p>\n<p>\u201cSome further tightening of monetary policy may be required to ensure that inflation returns to target in a reasonable timeframe, but that will depend upon how the economy and inflation evolve,\u201d he said.<\/p>\n<div class=\"bt_bb_row\" data-structure=\"12\">\n<div class=\"bt_bb_column col-md-12 col-ms-12 bt_bb_align_left bt_bb_vertical_align_top bt_bb_padding_normal\" data-width=\"12\">\n<div class=\"bt_bb_column_content\">\n<div class=\"bt_bb_separator bt_bb_bottom_spacing_small bt_bb_border_style_none\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"bt_bb_row_wrapper bt_bb_row_width_boxed_1200\">\n<div class=\"bt_bb_row\" data-structure=\"2-4-4-2\">\n<div class=\"bt_bb_column col-md-2 col-sm-4 col-ms-12 bt_bb_align_left bt_bb_vertical_align_top bt_bb_padding_normal\" data-width=\"2\">\n<div class=\"bt_bb_column_content\"><\/div>\n<\/div>\n<div class=\"bt_bb_column col-md-4 col-ms-12 bt_bb_align_center bt_bb_vertical_align_top bt_bb_padding_double bt_bb_highlight\" data-width=\"4\">\n<div class=\"bt_bb_column_content\">\n<div class=\"bt_bb_separator bt_bb_bottom_spacing_small bt_bb_border_style_none\"><\/div>\n<div class=\"bt_bb_separator bt_bb_bottom_spacing_small bt_bb_border_style_none\"><\/div>\n<div class=\"bt_bb_text\">\n<h6>Speak To An Expert<\/h6>\n<p>Schedule in a time to discuss your situation with a home loan specialist<\/p>\n<\/div>\n<div class=\"bt_bb_separator bt_bb_bottom_spacing_normal bt_bb_border_style_none\"><\/div>\n<div class=\"bt_bb_button bto btop bt_bb_icon_position_left bt_bb_color_scheme_14 bt_bb_style_filled bt_bb_width_inline bt_bb_shape_inherit bt_bb_size_normal bt_bb_align_inherit\" data-bt-override-class=\"{&quot;bt_bb_size_&quot;:{&quot;current_class&quot;:&quot;bt_bb_size_normal&quot;,&quot;xl&quot;:&quot;normal&quot;},&quot;bt_bb_align_&quot;:{&quot;current_class&quot;:&quot;bt_bb_align_inherit&quot;,&quot;xl&quot;:&quot;inherit&quot;}}\"><a class=\"bt_bb_link\" title=\"BOOK IN A CALL\" href=\"\/finance\/book-a-chat-with-tommy-biller\/\" target=\"_self\" rel=\"noopener noreferrer\"><span class=\"bt_bb_button_text\">BOOK IN A CALL<\/span><\/a><\/div>\n<div class=\"bt_bb_separator bt_bb_bottom_spacing_normal bt_bb_border_style_none\"><\/div>\n<\/div>\n<\/div>\n<div class=\"bt_bb_column col-md-4 col-ms-12 bt_bb_align_center bt_bb_vertical_align_top bt_bb_padding_double bt_bb_highlight\" data-width=\"4\">\n<div class=\"bt_bb_column_content\"><\/div>\n<\/div>\n<div class=\"bt_bb_column col-md-2 col-sm-4 col-ms-12 bt_bb_align_center bt_bb_vertical_align_top bt_bb_padding_double bt_bb_highlight\" data-width=\"2\">\n<div class=\"bt_bb_column_content\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"bt_bb_separator bt_bb_bottom_spacing_small bt_bb_border_style_none\"><\/div>\n<p>\u201cIn making its decisions, the Board will continue to pay close attention to developments in the global economy, trends in household spending, and the forecasts for inflation and the labour market.<\/p>\n<h3>How much could your repayments increase if the cash rate is increased?<\/h3>\n<p>Let\u2019s say you\u2019re an owner-occupier with a 25-year loan of $500,000 paying principal and interest.<\/p>\n<p>If the RBA increases the cash rate by another 25 basis points, and your bank follows suit, your monthly repayments could increase by another $76 a month. That\u2019s an extra $1,211 a month on your mortgage compared to 1 May 2022.<\/p>\n<p>If you have a $750,000 loan, repayments would likely increase by about $114 a month, up $1,816 from 1 May 2022.<\/p>\n<p>Meanwhile, a $1 million loan would increase by about $152 a month, up about $2,422 from 1 May 2022.<\/p>\n<h3>Concerned about your mortgage? Get in touch<\/h3>\n<p>Are you starting to feel the pinch? You\u2019re not alone. Many households around the country are feeling the pain of all the rate rises over the past 15 months.<\/p>\n<p>There are also lots of people on fixed-rate home loans wondering what options will be available to them once their fixed-rate period ends.<\/p>\n<p>Some options we can help you explore include refinancing (which could involve increasing the length of your loan and decreasing monthly repayments), debt consolidation, or building up a bit of a buffer in an offset account ahead of more rate hikes.<\/p>\n<p>So if you\u2019re worried about how you might meet your repayments going forward, give us a call today. The earlier we sit down with you and help you make a plan, the better we can help you manage any further rate hikes.<\/p>\n<p><strong>Disclaimer:<\/strong>\u00a0The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The decision to keep the official cash rate at 4.10% will be welcomed by homeowners around the country after monthly repayments increased by about $1,135 per $500,000 loaned (for a 25-year loan) since 1 May 2022. RBA Governor Philip said as interest rates had been increased by 4% since May last year, the Board decided&#8230;<\/p>\n","protected":false},"author":4,"featured_media":16012,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[42,6],"tags":[],"class_list":["post-16011","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","category-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Mortgage holders breathe a sigh of relief as RBA puts cash rate on hold - Quantiphy<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/finance-matters.info\/2023\/07\/04\/mortgage-holders-breathe-a-sigh-of-relief-as-rba-puts-cash-rate-on-hold\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mortgage holders breathe a sigh of relief as RBA puts cash rate on hold - Quantiphy\" \/>\n<meta property=\"og:description\" content=\"The decision to keep the official cash rate at 4.10% will be welcomed by homeowners around the country after monthly repayments increased by about $1,135 per $500,000 loaned (for a 25-year loan) since 1 May 2022. 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