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.
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.
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Pandemic measure set to cause interest rate pain for thousands of CBA customersA 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. | By Shane Wright swrighteconomy inflation
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Pandemic measure set to cause interest rate pain for thousands of CBA customersA 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
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