A decision by the nation’s largest lender to help ease financial pressure on home buyers two years ago is going to bite the same people in the coming months | swrighteconomy
A decision to help home buyers through the depths of the coronavirus pandemic could deliver the economy a pre-Christmas blow as customers with the nation’s largest lender await a steep increase in their monthly mortgage repayments.
In May 2020, CBA announced it would reduce home loan repayments to the minimum amount for up to 730,000 customers with variable interest rates who paid by direct debit. “At CBA, for example, by December the impact of already announced rate rises on monthly cash flow for mortgage holders on variable rate loans will be a four-fold increase compared to July.
The RBA board has six meetings between now and March. To reach 3.6 per cent, it would have to lift the cash rate by half a percentage point at one meeting and then a quarter percentage point at each other meeting. He said official interest rates would probably peak at 2.6 per cent before the RBA cut them in the second half of next year, predicting a combined half percentage point reduction in the cash rate at that time.
The biggest increase in hardship was in NSW and ACT, where it jumped from 26 per cent to 38 per cent.
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.
Soros reloads on big tech with Amazon, Google and new Tesla betGeorge Soros’ investment firm bolstered its stakes in Amazon, Salesforce and Alphabet among other large technology companies.
Read more »
Norway's celebrity walrus could be put down if crowds don't behaveNorway's latest summer celebrity could be euthanased if large crowds don't stay away from the 600kg mammal.
Read more »
Drought declared for parts of England after driest summer in 50 yearsLarge swaths of England have officially descended into drought, authorities announced on Friday, urging residents and businesses in affected areas to conserve water in the driest summer in 50 years.
Read more »
Pension reform to ease workforce crisis being considered by governmentSeniors could be allowed to work more hours without losing pension entitlements under a plan being considered by the Albanese government to ease Australia's workforce crisis. The plan has been endorsed by Opposition Leader Peter Dutton and backed by business groups and would provide a large injection of labour into the economy. The proposal is set to be debated at September's Jobs and Skills Summit in Canberra.
Read more »
‘Our world has changed to make it easy to put on excess weight’“It shouldn’t be all on the individual to change it,' said Professor Louise Baur, president of the World Obesity Federation about obesity and weight gain. | marywardy
Read more »
‘Extraordinarily unlikely’: ANZ boss hoses down fears of a recessionShayne Elliott acknowledged many Australians have strong buffers to deal with rising interest rates, but warned some at the “extremes” of society will struggle. | By Simone Fox Koob
Read more »