Borrowers with a $1 million dollar loan will see their monthly repayments hit $7401 if the Reserve Bank of Australia delivers three additional cash rate hikes
Borrowers with a $1 million dollar home loan will see their monthly repayments hit $7401 if the Reserve Bank of Australia delivers three additional cash rate increases, while prospective home owners will find their borrowing power slashed.
A 4.85 per cent cash rate would magnify the repayment burdens faced by borrowers, who are experiencing increasing financial pressures from the fastest interest rate tightening cycle in a generation., a household with a $500,000 loan would see their monthly repayments hit $3701, a $1366 increase since the first cash rate increase in May 2022, according to RateCity analysis prepared forFor a household with a $750,000 loan, repayments would hit $5551, which would be a $2049 increase since last May.
A 4.85 per cent cash rate would also magnify the already sharp decline in how much money households can borrow to buy a home, according to comparison site Compare the Market.If there are three more interest rate rises, a family with two children and a household income of $150,000 would see their borrowing power shrink to $646,000, down from $868,400 in May 2022.
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