Well, the reserve bank decided not to raise the interest rate!! I am sure it's a relief for many people that have big mortgages but will this actually last, we wonder.
So, we got a little bit of a reprieve for all homeowners, the cash rate is now at 4.35% (when you consider what we paid years ago its very low, however house prices were lower).
So come February 2024 will they spare all those mortgagees from another jump in their monthly repayments time will tell I suppose. On a $500,000 mortgage with a 25-year loan there has been an increase of $1,200 since May 2022.
According to Michele Bullock she seems to think that households were coping fine with higher mortgage repayments and would be able to handle more!!!! Really is that what you actually think? Probably because the banks have not taken too many homes back. You are obviously not talking to the "real" people out there Michele as they are struggling and they are deciding whether to pay their mortgage or put food on the table.
Has it hit its peak or are we going to endure another hike - that is the question isn't it? So don't be going splashing the cash around at Christmas only to find you are going to have to find yet another few hundred dollars to pay your mortgage.
Is it our baby boomers that are splashing out after having worked hard for 30 odd years and are now enjoying their fruits of their labour - probably!! Worked hard paid off their mortgages, downsized and now have cash to spend, interest rate rises are good for them as it means they get a better interest rate on their money in the bank.
One thing is for sure who is making a heap of cash out of all of this THE BANKS.
Take care and be prepared, plan and make sure you are not caught short.
MAKE YOUR OWN DECISIONS AND GIVE IT A REAL GO!!
SELLING MOSMAN PARK & THE WESTERN SUBURBS!!
KEEPING IT REAL IS OUR MOTTO!!
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