business
West Australian homeowners brace for fifth rate rise of the year on Tuesday
Western Australian homeowners brace for the Reserve Bank's fifth rate rise this year, expected on Tuesday.
Key points
- The Reserve Bank of Australia is all but certain to lift rates to 4.85 per cent, an 18-year high, on Tuesday.
- Canstar says a fifth rise would add $107 per month to repayments on a $700,000 loan.
- Westpac says 14 per cent of its customers have no buffer in their mortgage loan.
Why it matters. Households with mortgages could face higher repayments, and Westpac forecasts a 10.9 per cent fall in national house prices in the year to the end of March 2027.
The Reserve Bank of Australia is widely expected to raise its cash rate on Tuesday, a fifth rise this year, lifting rates to an 18-year high of 4.85 per cent. Canstar said a fifth rise would add $107 a month to repayments on a $700,000 loan, or $532 for the year. Westpac said 14 per cent of its customers have no buffer in their mortgage loan, rising to 15 per cent at Commonwealth Bank.
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West Australian homeowners brace for fifth rate rise of the year on Tuesday
The Reserve Bank of Australia is widely expected to raise interest rates on Tuesday, which would be its fifth increase this year. The cash rate is expected to reach an 18-year high. Home borrowers in Western Australia, many already under financial pressure, could face about $100 more in monthly repayments. Leading economists have warned that further rises may follow. The decision is due days before the Melbourne Cup and Christmas, a period when households typically face higher spending.