So apparently for the RB A yesterday all days was a good day for another cash rate hike.
In the midst of all the Melbourne Cup Day Fund.
The RB A ended the four steady and quiet months of zero increases by raising the interest rate by 25 basis points.
That means from 4.1%.
The cash rate is now 4.35% which is the highest it’s been in 12 years.
So with the current cash rate, a homeowner with a $500,000 mortgage can expect an additional 75 to $85 in their monthly repayments.
Crazy, I know, however, these increases no longer seem to surprise homeowners.
Many have already taken the smart move to refinance a few months back and have secured a much lower rate making them safe from the blows of future rate increases.
However, we’re not out of the woods yet.
The coming year end is not a guarantee that all these hikes will halt.
And even if it does just as we’ve experienced in the previous four months, remember that we’re still sitting now at 4.35%.
How many more months.
Do we need to wait for it to go down?
That’s if it will go down.
I’m sure you have lots of questions, whether you’re a homeowner or you’re yet to apply for a home loan.
These cash rate hikes affect you.
Please note that there are strategies that we can employ depending on your unique scenario.
L Street is here to help.
So reach out to us for a no strings conversation about your options.