By Parker McKenzie
Dandenong Ranges homeowners will see the cost of their mortgage rise again, with the RBA announcing another rise in the cash rate target for the fifth month in a row.
Amid rising cost of living and inflation, the RBA announced the .50 basis point raise to 2.35 per cent on Tuesday 6 September. The cash rate represents the interest rate on unsecured overnight loans between banks. and serves as the benchmark rate for mortgages, savings accounts and exchange rates.
RBA Governor Philip Lowe said in a statement the board is committed to returning inflation to the 2 to 3 per cent range over time while keeping the economy on an “even keel.”
“The path to achieving this balance is a narrow one and clouded in uncertainty, not least because of global developments,” he said.
“The outlook for global economic growth has deteriorated due to pressures on real incomes from high inflation, the tightening of monetary policy in most countries, Russia’s invasion of Ukraine, and the COVID containment measures and other policy challenges in China.”
According to Finder’s RBA cash Rate Survey, the average monthly mortgage payment is up 29 per cent in the last five months.
Head of consumer research at Finder Graham Cooke said after the rise comes into effect it will cost the average Aussie homeowner an additional $801 per month compared to what they were paying in April 2022.
“This fifth rate rise since May piles on the pressure for Aussie homeowners, who will have almost $10,000 less to spend on groceries, clothing and holidays compared to only six months ago,” he said.
“Fixed loan holders are in for a big shock once that rate expires and their payments spike. Our figures show the average fixed-rate homeowner will be paying $600 extra per month come December.”
