Interest rates push $600,000 mortgage payments from $2,600 to $3,680 per month.
Interest rates push $600,000 mortgage payments from $2,600 to $3,680 per month.
The Reserve Bank of Australia (RBA) raised interest rates 0.25% yesterday the 7th of March 2023, raising the cash rate from a record low of 0.1% in May 2022 to 3.6% March 2023, and this has all occurred within its past 10 meetings.
Before the Reserve Bank began its series of hikes in May 2022, the base variable rate was 2.19%. It’s about to be 5.49%, pushing up the monthly payment on a $600,000 mortgage from $2,600 to $3,680 based on the National Australia Bank’s (NAB) base variable rate, an added $1,080 to the monthly cost of mortgage repayments, being $12,960 per year.
On a slightly brighter note, inflation comes from overseas in the prices of fuel and other imported goods, and these commodities seems to be easing, with US inflation falling for seven months from 9.1% in June to 6.4% in January, and UK inflation falling for three months, from 10.1% to 9.1%.