The Local - June 2022

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Home loan rates rise • Issue No 98 • Newcastle’s favourite community newspaper • June 2022

The Reserve Bank of Australia (RBA) has finally announced its heavily telegraphed rate rise. The rise is the first since 2010 and took the base cash rate from 0.10 to 0.35: an increase of 0.25%.

What does the decision mean for home owners?

All the major banks have passed on the rate increase in full. Home owners can expect an increase in their monthly repayments of around $65 on a loan of $500,000. According to the ABS, the average home loan size in June 2021 was $555,964. For first home owners, it was $453,579. Debbie Ettridge, National Manager of Elders Home and Commercial Finance says the rise was inevitable. “The cash rate has been at record lows for some time now, and there was really no way to go but up. I think most home buyers would have been cognisant that rates were likely to rise and have factored that in. (continued on page 4)

Contact your established sales and property management specialists anytime… Steve

Experience

Sue

Scott

Real Estate Newcastle & Lake Macquarie

2/125 Elder Street, Lambton • Ph 4952 3744 • eldersnewcastlelakemac.com.au


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