RBA increases cash rate for second consecutive month, to 0.85%

Unless you’re on a fixed-rate mortgage, it’s extremely likely the banks will follow the RBA’s lead and increase the interest rate on your home loan very soon.

How much your repayments will go up each month depends on a number of factors, including how your particular bank responds to the cash rate increase and the size of your mortgage.

But let’s say you’re an owner-occupier with a 25-year loan of $500,000 (paying principal and interest).

This month’s 50 basis point increase to 0.85% means your monthly repayments could increase by about $133 a month.

If you have a loan of $750,0000, repayments will likely increase by about $200 a month, and a $1 million loan is expected to cost an extra $265 a month.

If you’re worried about your monthly repayments, get in touch

It’s very likely that we’ll see more RBA cash rate hikes before the year is out.

In fact, the RBA has basically said as much.

So if you’re worried about what interest rate rises might mean for your monthly budget, feel free to get in touch with us today to explore some options.

This could include refinancing or locking in a fixed rate ahead of any other future rate hikes.

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