A Melbourne Cup Day interest rate rise of 25 basis points would be the 13th increase in the cycle and hoist the cash rate to its highest level since 2011.A Melbourne Cup Day interest rate rise of 25 basis points would be the 13th increase in the cycle and hoist the cash rate to its highest level since 2011.Households diverting at least 30% of their disposable income to service a mortgage – a standard stress gauge – will account for 48.
This means a family with a $500,000 mortgage will pay an extra $1,210 a month since the cycle of hikes began.“There’s no doubt that there are many people who are paying a pretty high amount of their income on housing costs,” said Ben Phillips, principal research fellow at ANU’s Centre for Social Research and Methods. “And that’s a concern.”
“Most will be middle- or higher-income households,” Phillips said. “So that’s why the number is much lower and why it doesn’t increase quite as dramatically” as the overall mortgagor tally.Our Australian afternoon update breaks down the key stories of the day, telling you what’s happening and why it matters– are yet to report a significant upswing in troubled loans. That’s even though variable interest rates have jumped from a record low of about 2.5% to around 6% in just over a year.
Credit card demand was up 6.9% in the June quarter of this year compared with the same period in 2022, and personal loan applications were up 8.2%, according to Equifax, a global data group.
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