Freaking out about interest rate rises? Here are five things to do today
I returned this week from six blissful solo nights away in a cabin in the woods, where I meditated, cooked nourishing curries, listened to Dolly Parton and slept. Oh, did I sleep!Being me, I also packed my household budget binder and spent some time quietly reflecting on my annual budget.But while I was away, our Reserve Bank governor, Phil Lowe, has been cooking up other plans for my emotional state this financial year.
After nearly two decades of observing interest-rate rises from the sidelines as a dispassionate and renting journalist, I now find myself a cog in the wheel of the official “transmission mechanism” of “monetary policy”, under which borrowers are squeezed like lemons to bring about a slowing in demand and price pressures the central bank deems appropriate.
A degree of fear about what is to come is, in fact, the precise emotional response Lowe is hoping to elicit in borrowers. Joblessness is at its lowest in nearly half a century and, so long as you keep your job, you have an income to keep funding your mortgage. If the cash rate goes to 3 per cent, I’ll be out of pocket by an extra $932 a month. And so forth. At some point, my monthly budget surplus of about $1500 would be extinguished, and I’ll need to take action.Worst-case scenario, I could stop contributing extra to my superannuation, despite that strategy offering some of the best tax breaks in town.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Freaking out about interest rate rises? Here are 5 things to do todayIt’s becoming clear that people like me – first-home buyers who only shackled themselves to rather large mortgages quite recently – are going to bear the brunt of the interest-rate pain. | OPINION Jessica Irvine
Read more »
Freaking out about interest rate rises? Here are 5 things to do todayOpinion: First-home buyers who only shackled themselves to rather large mortgages quite recently – are going to bear the brunt of rates pain. But, here are five things you can do today to help you navigate what is to come | Jess_Irvine
Read more »
The cost of residential aged care just went upWhen it comes to interest rates it seems the only way is up. That means rising residential aged-care expenses are likely to continue.
Read more »
Sydney house prices on track for 20pc fallThe Reserve Bank of Australia’s likely 0.5 percentage point interest rate rise in August will completely knock out the Aussie housing market.
Read more »
The cost of residential aged care just went upWhen it comes to interest rates it seems the only way is up. That means rising residential aged-care expenses are likely to continue. | OPINION By Rachel Lane
Read more »
The unexpected hurdle for first home buyers after saving a depositThey’ve put together a deposit, got a home loan approved and are counting the cost of rising interest rates – but many potential buyers aren’t prepared for the next challenge.
Read more »