Australia

Mortgage holders ‘doing their best’: survey

More than a quarter of Australian mortgage holders have seen their mortgage payments increase by more than 6% since the beginning of the year.

This is according to a survey by online financial broker Savvy, which found that 25.7% of respondents witnessed a 6% or more rise in their repayments, and 18% found their repayments increased by 3-10%.

We found that about 6% were hit with an increase of 11-20% and 1% reported an increase of 21% or more.

According to the company, 77% of the 1,003 respondents saw some increase in their mortgage payments.

Veteran CEO Bill Tuvalas said the results showed the economy was working as interest rates were raised to keep inflation in check.

“With the RBA stepping on the brakes little by little each month, that is little consolation for Australians who are already in a tough situation and will face even tougher ones ahead,” Tuvalas said in a statement.

The Reserve Bank of Australia raised its main cash rate from 1.35% to 1.85% at its August meeting, with all four major banks passing on the rate hikes to mortgage holders.

In its quarterly statement on monetary policy on Friday, the RBA said financial markets were pricing in a cash rate rise of around 3% by the end of this year and around 3.25% in early 2023.

In a statement, the RBA reiterated its forecast for annual inflation to reach 7.75% by the end of the year, in line with estimates from the Federal Treasury.

Mortgage holders ‘doing their best’: survey

Source link Mortgage holders ‘doing their best’: survey

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