Mortgage Increase - 25 BP
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It's the Real Estate Podcast, brought to you by ANZ Home Loans for financial well-beings. And welcome to another episode of the Real Estate Podcast, available on iHeartRadio every morning at 6.30am. Also on Spotify and Apple and wherever you get your podcast from. Well, it's the morning after the cash rate rise. Wednesday is back with us, the 5th for October for 2022. Well, yesterday afternoon was pretty interesting. Finally, a little bit of a break from that 50 basis points with the RBA choosing to go 20%. 25 which must mean it's got to mean that the next rate rise is going to be 25 as well surely you can't go from 25 and then back up to 50 but we'll wait and see celebrate the 25 is what i say this morning
It was the sixth consecutive increase in the cash rate, which has now been lifted by 2.5 percentage points since the start of May. Now, on that $750,000 mortgage, the quarter percentage point increase will lift monthly repayments by $110. And if you take in all of the rate rises since May, that figure for borrowers to find has increased by $1,030 a month. It is a lot to find that. And one thing is for sure, and this is something we probably need to keep perspective on, and that is that the outlook for the global economy hasn't miraculously improved and can be argued... has actually gotten worse. It doesn't help when Putin is talking about tactical nukes, among other things. So we are still like every other country around the world.
We're still navigating ourselves out of this. It's your weekday real estate breakfast with news, interviews and predictions every morning on The Real Estate Podcast. Hey, also, if you have a $500,000 loan after yesterday's 25 basis points rise, you will be paying an extra 74 bucks. Hey, if you're celebrating your birthday for today, October 5, you are celebrating it with Rose from the Titanic. Yes, Kate Winslet. She is turning 46 years young today.
What does the recent RBA rate rise mean for mortgage holders?
It was on this day back in 2011 Steve Jobs passed away. It's a while ago, eh? And also from the history books, James Bond makes his theatrical debut on this day back in 1962. And we've been seeing all of the destruction with these hurricanes in the US. So bear in mind on this day in 1864, most of Calcutta was destroyed by a cyclone and around 60,000 people died. Coming up next, we are going to continue the extended interview with Simon Kustermarker from the Demographics Group. We spoke to Simon yesterday afternoon. You only got sort of half of that interview, so the full interview is coming up next. It's your real estate podcast for breakfast. It's the main centre forecast with PRD, selling smarter every day.
All right, let's have a look at your weather on this Wednesday morning around Australia. Grab the raincoat. You're going to need it in Sydney, expecting rain with 21 degrees. In Melbourne, the rain to increase also, expecting a high of 17 degrees. In Brisbane, expecting partly cloudy skies but it should be dry with 24 degrees. And in Perth today, showers to ease and a high of 21. We talk with leading property commentators with analysis, predictions, forecasts, and what's trending every morning from 6.30. G'day there, Simon. Great to have you on the podcast. Great to be back. Well, they have made their call, the RBA. They have decided to go a little bit softer, which is interesting. It's what I was predicting for this month, 25 basis points instead of the 50.
Well, that's the result, I guess, that many economists were hoping for, a relatively low increase in order to slow the negative effects on the mortgage owners in particular. And the other problem, Simon, is that people are facing less opportunity to refinance their mortgage. In fact, some can't right now. They cannot refinance, which means that more people will follow suit. And the main reason for this is the equity in their properties when it falls below 20%. They're just not able to refinance. And it's been described as being a prisoner to your own mortgage. Absolutely. And if this occurs at a high enough rate, the market needs to find a solution.
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