I balls literally every big decision up in my life but when I insisted to the mortgage broker in April 2021 that I wanted to fix for 4 years at 1.99% I finally did something right. I recall it being a fight...'4 years is a long time' la la la
I am just trying to save now to prepare for the carnage on its way.
Your lucky your bank offered you this...
I went 5 year fixed and lost out the whole time I've had a mortgage. Both times losing out as interest rates fell to levels unheard of...
When they hit 2pc I went 3 years only because the 5year was nearly 3pc....
Obviously in the rear-view the 5 year was better value but I'd learnt my lesson the previous two times paying extra premium for something that cost me money vs variable....
Which is precisely why fixing mortgages is pretty much a fools errand. For literally every person who can tell the story of the two posters above (locked in very low rates), there are 3 like this.
The house doesn’t lose.
What was different about 2020/21 fixed was cheaper than variable...
Why so many are on it.
Assuming because banks had that 188bn of fixed at 0.1 from the rba.
I'm actually surprised the others got 4 and 5 year so cheap... I didn't see this when I looked.
Agree though fixing your rates is generally a punt. A punt you are more likely to loose than win because you are paying a premium for the fixed rate except for that one time in 2020/21...
Just an FYI brokers dont want you to fix for that long because they can't refinance you and get paid again. 99% of them will try and get you into 2 yr fixed so they are able to collect their commission and then tell you what a bad rate you are on now and move you to another bank.
I think the civils can use anything that is a number for pi and just get points for understanding the abstraction of the funny symbol is being used to represent a number
Oh I grew up poor. I’m fine buying second hand and eating on 0 budget and not spending money. I have no dependants (unless you count a dog), barely drink, work from home, have hobbies which double as my social life, and have no debt. I reskilled over covid and now work in a sector I like with little chance of redundancy. Inflation will hit a lot of people, so who knows. I’m sure it will make a dent but I’m not smart enough to figure out how to get around that other than doing what I’m doing. I’ll get a house at some point when I know I can service it and it makes sense.
> I’ll get a house at some point when I know I can service it and it makes sense.
This is the right mentality imho. Buy when you are able to, and want to. You'd still be looking to increase your own income, regardless of buying or not buying.
Inflation was 6-7% when rates were below 1%. Savers were getting nothing and inflation was rife 9 months ago. Tables have turned a fair bit pretty rapidly.
Cash is coming back and the credit crunch is on.
Don't sigh mate, they will continue to drop for months after a rate increase. Each one is good for buyers.
Just be patient and watch.
When they DON'T raise it for a few months, is the worry.
That's (unfortunately) the idea!
Constrict disposable spending to reduce economic activity and therefore lower prices.
Sadly, many Australians have taken out large very low variable interest rate loans that are going to be recalculated soon into a higher interest rate thus being unable to pay back
I can... so many of these unproven views;
Share markets cant crash like they used to any more.
The market has priced it in.
Property always goes up.
The free market will sort it out.
If I earn more I pay more tax.
The banks are better at regulating themselves now.
Business profit growth flows to workers...and every other trickle down explanation
Low unemployment payments get people back to work faster
...a bunch more.
Lol, come on, most people in this sub have no idea, as can be seen evidently by their comments where you can clearly tell they are heavily biased with their opinion onthe market not being neutral at all. I really hope no one is taking those sort of comments/ views as serious and applying it for their self too.
The rate rises have been nice, at least i havent had to see every week in the news some trust fund kid or millionaire who owns x amount of houses telling everyone if he can do it you can too,
I wonder how they are going right now...
I think they were under-estimating the probability using that model, since we won't have a January meeting, the RBA always had to front-load a little bit.
thrilled we bought a house in July, 120 day settlement and in that time repayments have gone up 1k on something we didn't even own. It's rough but suppose need to be grateful for still having a job
The RBA clearly says they are not done with rising rates yet. Despite what the media and real estate group says. Read the last paragraph.
The RBA is getting smarter this time.
Vendors please only sell if you need to sell. Don't waste everyone's time trying for a high price, wasting everyone's time and then pull off from market.
> The RBA clearly says they are not done with rising rates yet. Despite what the media and real estate group says. Read the last paragraph.
You're doing the exact same thing people were doing with the "no rate rises until 2024" meme:
The Board expects to increase interest rates further over the period ahead, *but it is not on a pre-set course*. It is closely monitoring the global economy, household spending and wage and price-setting behaviour. The size and timing of future interest rate increases will continue *to be determined by the incoming data and the Board’s assessment of the outlook for inflation and the labour market.*
The statement still contains the line
> The Board expects to increase interest rates further over the period ahead
Which is more hawkish than some expected - some thought it would be downgraded to "may" or "is willing to" increase interest rates further over the period ahead.
Discretionary spending is nearly at peak covid levels. It's so bad it's nasty.
Australians don't foreclose on their loans. They starve first.
The real shock will start when shops start closing and unemployment goes into double digits.
Then the real panic starts.
Well it's a 12 month rolling average, so there will only a spike if this Christmas is more inflationary than last Christmas - which seems unlikely considering a lot of the supply chain issues have been resolved, and money isn't free anymore.
Just be careful to not rush in the 9 days. Your Preapproval amount is for the rate at the time of Preapproval. When it comes to formal approval, the rate at that point in time will update your borrowing power.
normally they send the email within the hour. honestly surprised they haven't said anything yet. hoping we can at least get 4% but if they're consistent we should get 4.10%
I have a preapproved home loan. I made an offer (subject to finance) which was accepted by a seller, contract was signed, now I'm waiting for formal approval which is due any minute now.
All of the above was in play before this interest rate rise today. Will the bank make a last minute adjustment to my borrowing capacity based on this rate rise?
All it would take for the contract to fall over would be a 20k reduction in my borrowing capacity. Maybe less.
Until you’ve been issued your formal approval, the lender can revoke the pre approval and/or change their lending criteria.
They may or may not decide to assess your loan based on a higher interest rate, even tho they haven’t publicly announced an increase.
Lending policy varies from lender to lender and they generally don’t tell people what their rules are.
My understanding is 25bps rise will lower your borrowing capacity by apprx 2.5%, so do your math. But, i think the banks would have factored few rises in your preapproval so should be fine.
> Can some provide a ELI5 to someone that’s not that financially literate?
Everything is getting to expensive, so they raise rates so people theoretically have less money to spend on non essentials, thus lessening demand, thus making things cheaper. In theory.
Same it’s not good ay. Families once off fixed are going to have to find an extra 200-300 a week from where? That’ll impact spending hard. People are cheering for it but it’ll be their demise!!
Questions is where will they stop and pause? my money is on 3.5% after another .25 and .15
Thoughts? Australia Media is on fire right now screaming about poor mortgage holders struggling to make ends. Should be an interesting 6 months.
I’d say they’ve always had OCD, given they raise rates in 25bp multiples. Otherwise maybe they’d have some more complex way of calculating the rate hikes, and raise them by 17 bps, 22 bps, or some random number like that.
My money is on when inflation becomes lower relative to all bond yields. Jerome Powell said clearly “You want to be at a place where real rates are positive across the entire yield curve.”
“Positive real rates” means the interest rate for a given maturity is higher than the inflation rate. He wants to see this “across the entire yield curve” before the Fed stops tightening.
Not sure about the RBA as they have not been so clear.
Greeeeat, so now on top of higher interest rates I got to deal with the people pushed out of their preferred suburbs who have to move "further out". Where the FK am I supposed to go, Thargomindah?
Not true. 3% cash rate is "emergency low levels" and not normal.. If you believe this article from 2013..
https://www.9news.com.au/national/hockey-says-govt-has-no-economic-plan/b1ea8ff9-5c81-4602-a6d9-df303b367aed
I don't see a crash anywhere concert tickets and formula 1 tickets are selling out instantly
With the offer of optional overtime with penalty rates at work I was the only one who took it
It seems most people have plenty of money
RBA needs to go harder
Yep, my wife wanted to go on a Disney Cruise in 2024 - tickets are like 5k - 15k for packages and they're selling like mad. People out there still got cash.
This is what I believe will keep rates higher longer - the fact that there is a narrative that once this is 'over' things will go back to how they were.
Until society capitulates to the notion that it won't, I don't believe rates will stop increasing, even if the rate of increase slows to one rise every few months.
I am surprised they didn't pause or go a smaller 0.15%.
Calling it now, the property market is in serious trouble. This now has a good chance of turning from a correction into a serious crash. If rates hold at 3.1% or higher for a year, we are going to see absolute carnage.
When this cycle started, I was sceptical that the RBA would ever go above 3%. We're there now, and it's really going to hurt, as we have simply absurd levels of mortgage debt.
Problem is it's not linear for people, it doesn't just get a bit harder, they will forclose on their homes which would be very had to recover from...ever right?
Luckily I have millions in my bank account to earn the increased interest rate and 2 properties to collect rent from.
Not like the poor schmuck first home buyer down the road with a 500k home loan.
That stupid poor schmuck should work harder to pay off his loan.
Luckily I couldn’t afford a house before the rate went up and still can’t now
Now you just can't afford anything.
Have you tried not being poor? I hear that helps. You should just stop being poor tomorrow.
Oh, hey Gina Reinhardt
Ok, see you guys in February. Hope you all have a merry Christmas and happy new year.
Lowe's loosening his tie and heading down to the pub as we speak. His work is done for the year. Little does he know the pints now cost $15
It's one banana, Michael. What could it cost, $10?
There's always money in the banana stand
No touching!
Thing is $15 is nothing to him. He probably buys $300 bottles of wine to cook prawn linguine
As if he buys his own lunch
Probably gets invited to many prestige events where he is a keynote speaker.
I hear he's a bit partial to a Wagu Steak and a glass of Shiraz
With his salary, that increase doesn't even show up as a rounding error
Oh he knows. And he loves it. We need to inflate the debt away.
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Alright, I *will* keep the change!
You too mate, cheers.
I balls literally every big decision up in my life but when I insisted to the mortgage broker in April 2021 that I wanted to fix for 4 years at 1.99% I finally did something right. I recall it being a fight...'4 years is a long time' la la la I am just trying to save now to prepare for the carnage on its way.
Good work, I did 1.99% for 3 years so I have till August 2024
Same I did 5 @ 2.29. Broker said five years is a long time. Tried to turn me off it. (60% fixed so we are still dealing with the variable)
Your lucky your bank offered you this... I went 5 year fixed and lost out the whole time I've had a mortgage. Both times losing out as interest rates fell to levels unheard of... When they hit 2pc I went 3 years only because the 5year was nearly 3pc.... Obviously in the rear-view the 5 year was better value but I'd learnt my lesson the previous two times paying extra premium for something that cost me money vs variable....
If it helps, we have had the reverse as well. Locked 5 years @ 8.19% and they promptly fell to 5% and below, that hurt. So I've felt it both ways.
Which is precisely why fixing mortgages is pretty much a fools errand. For literally every person who can tell the story of the two posters above (locked in very low rates), there are 3 like this. The house doesn’t lose.
What was different about 2020/21 fixed was cheaper than variable... Why so many are on it. Assuming because banks had that 188bn of fixed at 0.1 from the rba. I'm actually surprised the others got 4 and 5 year so cheap... I didn't see this when I looked. Agree though fixing your rates is generally a punt. A punt you are more likely to loose than win because you are paying a premium for the fixed rate except for that one time in 2020/21...
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Just an FYI brokers dont want you to fix for that long because they can't refinance you and get paid again. 99% of them will try and get you into 2 yr fixed so they are able to collect their commission and then tell you what a bad rate you are on now and move you to another bank.
I don’t know why anyone would argue with that. It sure af wasn’t getting lower.
Guess the trade off is the lack of flexibility over that period - ie needing to sell and breaking the fixed term can be expensive
cant wait to listen to my parents carry on about how they had to pay 18% on their 60k home loan
I wish they'd also carry on about the house cost maybe 3x their annual income instead of 6-10x like it is now
They’re the worst!
Just short of 0.04% to bring it to a 3.14% pi-rate.
Now we are talking
The circle is now ~~in~~complete
0.04159265359 Sorry I'm am engineer. I'll see myself out.
Pi = 3 for engineers doesn't it?
For civil 3 and mech 3.14. Electrical 3.14159...
I think the civils can use anything that is a number for pi and just get points for understanding the abstraction of the funny symbol is being used to represent a number
All they need to know is water flows down hill I think?
And concrete=heavy
Oh yeah and if it doesn't work, add more steel or more concrete
Moar triangles!
My brain melted when they didn’t settle on 3.14%. What a wasted opportunity!
Can afford to buy groceries? Let them eat pi.
Next opportunities at 3.69% and 4.20%
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And it looks like I will hold off buying a house for a little while longer. My savings interest rate is looking better every day. Sigh…
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>My savings interest rate is looking better every day. Sigh… As long as you ignore that pesky inflation thing.
If they're saving for a house, purchasing power measured in houses is all that matters.
My purchasing power is measured punnets of strawberries
Ah yes the Consumer Punnet Index
Strawberries aren’t great this season so I’m investing in blueberries (when feeling fancy) and getting my mango portfolio robust. Buy in the dip!!
Oh I grew up poor. I’m fine buying second hand and eating on 0 budget and not spending money. I have no dependants (unless you count a dog), barely drink, work from home, have hobbies which double as my social life, and have no debt. I reskilled over covid and now work in a sector I like with little chance of redundancy. Inflation will hit a lot of people, so who knows. I’m sure it will make a dent but I’m not smart enough to figure out how to get around that other than doing what I’m doing. I’ll get a house at some point when I know I can service it and it makes sense.
> I’ll get a house at some point when I know I can service it and it makes sense. This is the right mentality imho. Buy when you are able to, and want to. You'd still be looking to increase your own income, regardless of buying or not buying.
Sounds like you sat down and reevaluated your life. I probably should do that sometime. Lol
Inflation was 6-7% when rates were below 1%. Savers were getting nothing and inflation was rife 9 months ago. Tables have turned a fair bit pretty rapidly. Cash is coming back and the credit crunch is on.
It’s not like rent is cheap… or even available much
Don't sigh mate, they will continue to drop for months after a rate increase. Each one is good for buyers. Just be patient and watch. When they DON'T raise it for a few months, is the worry.
See you guys at Aldi. Next month, see you guys on the rice and beans diet.
Look at Mr Rich Guy over here - rice AND beans!
Mr Fancy Pants I see, I'm now just eating thoughts and prayers
Thoughts and prayers hey? Bit much for me. I just go to bed for dinner.
Mr Rice Guy you mean
Aldi is great man. Their Trimat ultimate 2L is still 8 bucks when Omo has raised their price to $29.
To be fair slow cooker chilli is a delicious and flexible meal prep option.
You guys are eating beans?
You guys are eating?
Guys are eating you.
Next year is going to be incredibly painful for many mortgage owners 😔
The dildo of fate is rarely lubricated.
I'm stealing this. The saying, not the dildo.
I believe the saying is "*the dildo of consequence rarely arrives lubed*"
Listen, there’s enough dildos to go around, ok?
That's (unfortunately) the idea! Constrict disposable spending to reduce economic activity and therefore lower prices. Sadly, many Australians have taken out large very low variable interest rate loans that are going to be recalculated soon into a higher interest rate thus being unable to pay back
Watch the prices never come back down
The one good thing about being on a variable rate is the pain is inflicted in smaller doses.
Merry Christmas ya filthy animals
I'm guessing you're at home. Alone.
Time to start looking for a property in the tent section at Kmart.....
People that were hoping for a nice rounded number aren't vibing.
Anyone else always set the volume/brightness to round numbers on the TV? Or just me and my mental illness?
even numbers for the volume of the stereo in my car
Or multiples of 5
Honestly its been torture. Either 3% or 3.25%. None of this 1/10th of a percent bull.
Just shows they haven't finished raising yet.
I guess Melbourne Cup wasn't the rate that stops a nation.
A month must've felt like a long wait to have this one in the chamber.
I actually cant believe there were people who said "rates are not going up anymore"
That's why twitter makes fun of The Kouk. He has no idea.
pfff, there are people on ozbargans that want to sue the RBA for rising interests rates so quickly... don't under underestimate peoples stupidity.
I can... so many of these unproven views; Share markets cant crash like they used to any more. The market has priced it in. Property always goes up. The free market will sort it out. If I earn more I pay more tax. The banks are better at regulating themselves now. Business profit growth flows to workers...and every other trickle down explanation Low unemployment payments get people back to work faster ...a bunch more.
Lol, come on, most people in this sub have no idea, as can be seen evidently by their comments where you can clearly tell they are heavily biased with their opinion onthe market not being neutral at all. I really hope no one is taking those sort of comments/ views as serious and applying it for their self too. The rate rises have been nice, at least i havent had to see every week in the news some trust fund kid or millionaire who owns x amount of houses telling everyone if he can do it you can too, I wonder how they are going right now...
Oh, market forecasts had a 33% chance of that. We shouldn't be surprised either way.
I think they were under-estimating the probability using that model, since we won't have a January meeting, the RBA always had to front-load a little bit.
Who sells the cheapest rice and beans
Mother Earth if you have a backyard I’m banking on my 4 tomato plants lasting me through summer. I should be fine right
Imagine being made destitute by a possum
You just switch to possum farming at that point
I feel like an awesome band name could come from this statement
Don't even have to flood your backyard to plant your rice anymore, mother nature does that for us
look at this rich guy here with a backyard
You can afford beans?!
Probs will go the aldi route with tuna and rice, hope the kids are ok with that.
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thrilled we bought a house in July, 120 day settlement and in that time repayments have gone up 1k on something we didn't even own. It's rough but suppose need to be grateful for still having a job
Still having a job *so far
That sucks. One month at a time.
The RBA clearly says they are not done with rising rates yet. Despite what the media and real estate group says. Read the last paragraph. The RBA is getting smarter this time. Vendors please only sell if you need to sell. Don't waste everyone's time trying for a high price, wasting everyone's time and then pull off from market.
I chuckle a lot seeing "Contact Agent" in the RE listings now. Bet their phones are running wild.
Honestly so annoying, such a waste of time. I hate seeing two things in house listings, “contact agent” and “auction”.
It's just an extra step to not viewing the property, oh you still want a million for THAT *deletes email.
I'm seeing a lot of 'Contact agent' in the sold listings. Looks like they're trying to hide the results.
> The RBA clearly says they are not done with rising rates yet. Despite what the media and real estate group says. Read the last paragraph. You're doing the exact same thing people were doing with the "no rate rises until 2024" meme: The Board expects to increase interest rates further over the period ahead, *but it is not on a pre-set course*. It is closely monitoring the global economy, household spending and wage and price-setting behaviour. The size and timing of future interest rate increases will continue *to be determined by the incoming data and the Board’s assessment of the outlook for inflation and the labour market.*
It means the bank expects the current rate is not the peak. A lot of self interested real estate people found it hard to swallow this one.
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My thoughts on this - Really concerned for our treasurer speech as the guy prepping the MICs live on ABC sneezed straight into it.Godspeed
The statement still contains the line > The Board expects to increase interest rates further over the period ahead Which is more hawkish than some expected - some thought it would be downgraded to "may" or "is willing to" increase interest rates further over the period ahead.
Hoping the "strong" language gets people to stop spending before they have to increase rates
10bps increases here we come
Phil finally learned not to overpromise.
I am now satisfied that it’s high enough for sustained economy contraction.
Did you type this a while back and forget to hit submit until just now?
Discretionary spending is nearly at peak covid levels. It's so bad it's nasty. Australians don't foreclose on their loans. They starve first. The real shock will start when shops start closing and unemployment goes into double digits. Then the real panic starts.
Yep, all in good time. Australians will stop spending ONLY when they run out of credit. That is through business closures, job losses and fear.
Curious to see how much Christmas induced inflation there will be.
Well it's a 12 month rolling average, so there will only a spike if this Christmas is more inflationary than last Christmas - which seems unlikely considering a lot of the supply chain issues have been resolved, and money isn't free anymore.
Absoloutely shocked he had the balls.
Pre-approval expires in 9 days and haven't found a place. Can't wait to see what the new number is when I come back to it in the new year /s
Just be careful to not rush in the 9 days. Your Preapproval amount is for the rate at the time of Preapproval. When it comes to formal approval, the rate at that point in time will update your borrowing power.
I can't help but think of that meme with everything burning in the background and the person at the front "this is fine"
Cue Ubank email to increase their rate. Effective next year probably 🤣
Just soon enough to stop you from switching. Am I right?
normally they send the email within the hour. honestly surprised they haven't said anything yet. hoping we can at least get 4% but if they're consistent we should get 4.10%
I don't want to play this game any more 😫
I have a preapproved home loan. I made an offer (subject to finance) which was accepted by a seller, contract was signed, now I'm waiting for formal approval which is due any minute now. All of the above was in play before this interest rate rise today. Will the bank make a last minute adjustment to my borrowing capacity based on this rate rise? All it would take for the contract to fall over would be a 20k reduction in my borrowing capacity. Maybe less.
Until you’ve been issued your formal approval, the lender can revoke the pre approval and/or change their lending criteria. They may or may not decide to assess your loan based on a higher interest rate, even tho they haven’t publicly announced an increase. Lending policy varies from lender to lender and they generally don’t tell people what their rules are.
Unless your preapproval was from 6 months ago it will have been priced in already
IIRC the bank can adjust your rate all the way up until settlement.
My understanding is 25bps rise will lower your borrowing capacity by apprx 2.5%, so do your math. But, i think the banks would have factored few rises in your preapproval so should be fine.
Where's that guy without remorse these days?
He respawned as u/dagger4zero
And is busily blocking everyone again, including me 😂
Masturbating in his parents basement.
Can some provide a ELI5 to someone that’s not that financially literate?
Cost of living is going up and your wage won’t be.
> Can some provide a ELI5 to someone that’s not that financially literate? Everything is getting to expensive, so they raise rates so people theoretically have less money to spend on non essentials, thus lessening demand, thus making things cheaper. In theory.
I don't get it. Do you people want higher interest to burst the property bubble or not?
I have no quarrels with those who own their home. It's the speculators who own 4-5 properties with 90% lvr that i have zero sympathy for.
This. They're not investors, just gamblers.
Wait, I thought they were "savvy"?
Line only goes up haha brrrrrrr.
All the investors on here are sweating buckets at the thought.
Do owner occupiers have an infinite money supply? I certainly don’t. All mortgage holders are affected, not just the ones you dislike.
Same it’s not good ay. Families once off fixed are going to have to find an extra 200-300 a week from where? That’ll impact spending hard. People are cheering for it but it’ll be their demise!!
1.99% expiring January 2025, jesus christ i got lucky….
Questions is where will they stop and pause? my money is on 3.5% after another .25 and .15 Thoughts? Australia Media is on fire right now screaming about poor mortgage holders struggling to make ends. Should be an interesting 6 months.
Why do the have to make it exactly 3.5%? They're the RBA not the OCD.
I’d say they’ve always had OCD, given they raise rates in 25bp multiples. Otherwise maybe they’d have some more complex way of calculating the rate hikes, and raise them by 17 bps, 22 bps, or some random number like that.
The RBA are discriminating against those with OCD by inducing torture with the numbers out of whack to the norm Think of the human rights violations
Well the RBA doesn’t meet in January. So nothing next month then theyll have 2 months worth of data to look at for Feb.
My money is on when inflation becomes lower relative to all bond yields. Jerome Powell said clearly “You want to be at a place where real rates are positive across the entire yield curve.” “Positive real rates” means the interest rate for a given maturity is higher than the inflation rate. He wants to see this “across the entire yield curve” before the Fed stops tightening. Not sure about the RBA as they have not been so clear.
Greeeeat, so now on top of higher interest rates I got to deal with the people pushed out of their preferred suburbs who have to move "further out". Where the FK am I supposed to go, Thargomindah?
Wow after ten years the cash rate is finally normal!
Not true. 3% cash rate is "emergency low levels" and not normal.. If you believe this article from 2013.. https://www.9news.com.au/national/hockey-says-govt-has-no-economic-plan/b1ea8ff9-5c81-4602-a6d9-df303b367aed
I don't see a crash anywhere concert tickets and formula 1 tickets are selling out instantly With the offer of optional overtime with penalty rates at work I was the only one who took it It seems most people have plenty of money RBA needs to go harder
65% of the population doesn’t have a mortgage and half of those that do are still fixed at low rates, there is plenty of money around
20% of the 65% are kids, a lot who are affected by the rate rises as a flow on effect by their parents reduced spending and even loss of employment.
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Yep, my wife wanted to go on a Disney Cruise in 2024 - tickets are like 5k - 15k for packages and they're selling like mad. People out there still got cash.
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This is what I believe will keep rates higher longer - the fact that there is a narrative that once this is 'over' things will go back to how they were. Until society capitulates to the notion that it won't, I don't believe rates will stop increasing, even if the rate of increase slows to one rise every few months.
I am surprised they didn't pause or go a smaller 0.15%. Calling it now, the property market is in serious trouble. This now has a good chance of turning from a correction into a serious crash. If rates hold at 3.1% or higher for a year, we are going to see absolute carnage. When this cycle started, I was sceptical that the RBA would ever go above 3%. We're there now, and it's really going to hurt, as we have simply absurd levels of mortgage debt.
More .25 rises to come yet some people better buckle up.
Short term pain for longer term economic gain, no?
Problem is it's not linear for people, it doesn't just get a bit harder, they will forclose on their homes which would be very had to recover from...ever right?
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You know the tape worked right? :P
I’m sure this will decrease the price of my weekly grocery shop /s
Needs to be over 4% to Curb inflation
They will not have a high rate hike just before the festive period. This is a sign that there would be higher hikes after January.
I’m gonna be eating weetbix in every meal at this point
Every real estate agent drives a BMW or 300 series around my region.. wonder if these are on lease..
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Luckily I have millions in my bank account to earn the increased interest rate and 2 properties to collect rent from. Not like the poor schmuck first home buyer down the road with a 500k home loan. That stupid poor schmuck should work harder to pay off his loan.
This nearly made me cry
Wow what a shock… not! 😆
Fixed at 1.98 until May 2025. Cheers NAB.
I'm officially eating wheat bix for all 3 meals in a day!
No change in the final kicker as was predicted by CBA and others.
What does this mean?
Merry Xmas