Rates slug a blow to lenders
BUNDABERG residents with an average home loan can expect to pay an extra $22 to $27 a week after the Reserve Bank lifted interest rates yesterday.
The bank announced it had lifted rates by 25 basis points to 4%.
Ulton Bundaberg partner Daryl Corpe said the average Bundaberg home loan was between $200,000 and $250,000.
“The effect on these lenders will be about $22 to $27 a week more in home repayments,” he said.
“On an annual basis that’s about $1500 more a year in after tax dollars, and that can be a lot for some people.”
Mr Corpe said he expected rates to rise even further.
“The Reserve Bank has said rates are expected to creep up to what they call the normal rate,” he said.
“That could mean another 0.5% to 1% in this cycle yet.”
Mr Corpe said financial advisers were already seeing some pressure on people with home loans.
“Any rise is not good for homeowners,” he said.
Treasurer Wayne Swan said yesterday rate rises were inevitable as the Australian economy recovered.
He said the stimulus measures had made the economy the envy of the world.