Skip to content
Finance Hub Logo
MAKE A FREE BOOKING
  • Home
  • About
  • Services
  • Calculators
  • Testimonials
  • Partner Offers
  • Contact
  • Book Appointment
Menu
  • Home
  • About
  • Services
  • Calculators
  • Testimonials
  • Partner Offers
  • Contact
  • Book Appointment
Finance Hub Logo
Finance Hub Logo
  • Testimonials
  • Partner offers
  • 1300 346 482
  • info@finhub.net.au
  • About
  • Services
    • Home Loan Process
    • Bridging Loan
    • Construction Loan
    • Debt Consolidation Loan
    • First Home Buyers / Government Grants
    • Guarantor Loan
    • Lenders Mortgage Insurance
    • Low Doc Loan
    • Self Employed Home Loan
    • Split Loan
  • Calculators
  • Blog
  • Contact
Menu
  • About
  • Services
    • Home Loan Process
    • Bridging Loan
    • Construction Loan
    • Debt Consolidation Loan
    • First Home Buyers / Government Grants
    • Guarantor Loan
    • Lenders Mortgage Insurance
    • Low Doc Loan
    • Self Employed Home Loan
    • Split Loan
  • Calculators
  • Blog
  • Contact
MAKE A FREE BOOKING

RBA increases cash rate for second consecutive month, to 0.85%.

  • June 2022

The Reserve Bank of Australia (RBA) has increased the official cash rate by 50 basis points to 0.85%. How much extra should you expect to pay on your home loan?

Today’s cash rate hike is the second in as many months, with the RBA last month increasing the official cash rate from a record-low 0.10% to 0.35% amid high inflation concerns.

Before then, we hadn’t had a cash rate hike since November 2010.

Now usually, the RBA increases or decreases the cash rate by 0.25%.

However, today’s larger than expected 0.50% cash rate hike is due to inflation in Australia having “increased significantly”, said RBA Governor Philip Lowe in a statement.

“Given the current inflation pressures in the economy, and the still very low level of interest rates, the Board decided to move by 50 basis points today,” said Governor Lowe.

“Higher prices for electricity and gas and recent increases in petrol prices mean that, in the near term, inflation is likely to be higher than was expected a month ago.”

How much more will your mortgage cost each month?

Unless you’re on a fixed-rate mortgage, it’s extremely likely the banks will follow the RBA’s lead and increase the interest rate on your home loan very soon.

How much your repayments will go up each month depends on a number of factors, including how your particular bank responds to the cash rate increase and the size of your mortgage.

But let’s say you’re an owner-occupier with a 25-year loan of $500,000 (paying principal and interest).

This month’s 50 basis point increase to 0.85% means your monthly repayments could increase by about $133 a month.

If you have a loan of $750,0000, repayments will likely increase by about $200 a month, and a $1 million loan is expected to cost an extra $265 a month.

If you’re worried about your monthly repayments, get in touch

It’s very likely that we’ll see more RBA cash rate hikes before the year is out.

In fact, the RBA has basically said as much.

So if you’re worried about what interest rate rises might mean for your monthly budget, feel free to get in touch with us today to explore some options.

This could include refinancing or locking in a fixed rate ahead of any other future rate hikes.

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.

share

About Finance Hub & Network

Related Posts.

Finance

Why more Aussies are turning their backs on the McMansion

learn more
Finance

Is the property market starting to rebound?

learn more
Finance

Property valuation: what you need to know when buying a home

learn more
Finance

Heads up business owners: the asset write-off deadline is looming!

learn more
Finance

More home buyers set to benefit from low deposit, no LMI schemes

learn more
Finance

Homeowners brace as RBA raises cash rate to 3.85%

learn more
Finance

Tips to help stay on top amidst the rate hike cycle

learn more
Finance

Property listings and prices are bouncing back

learn more
Finance

What is the fixed-rate cliff and how can refinancing help?

learn more

End of content

No more pages to load

1 2 … 11 Next »
Finance Hub Logo Footer

Applying for a home loan can often be overwhelming – especially if you’ve never gone through it before. Having finance hub and networks on your side can help make the home loan process a whole lot easier.

Youtube Facebook Linkedin Instagram

Services

  • Bridging Loan
  • Guarantor Loan
  • Split Loan
  • Lenders Mortgage Insurance
  • Construction Loan
  • Debt Consolidation Loan
  • Self Employed Home Loan
  • Low Doc Loan
  • First Home Buyers Grants
  • Home Loan Process
Menu
  • Bridging Loan
  • Guarantor Loan
  • Split Loan
  • Lenders Mortgage Insurance
  • Construction Loan
  • Debt Consolidation Loan
  • Self Employed Home Loan
  • Low Doc Loan
  • First Home Buyers Grants
  • Home Loan Process
  • Bridging Loan
  • Guarantor Loan
  • Split Loan
  • Lenders Mortgage Insurance
  • Construction Loan
  • Debt Consolidation Loan
  • Self Employed Home Loan
  • Low Doc Loan
  • First Home Buyers Grants
  • Home Loan Process
Menu
  • Bridging Loan
  • Guarantor Loan
  • Split Loan
  • Lenders Mortgage Insurance
  • Construction Loan
  • Debt Consolidation Loan
  • Self Employed Home Loan
  • Low Doc Loan
  • First Home Buyers Grants
  • Home Loan Process

quick links

  • Home
  • About
  • Services
  • Calculators
  • Testimonials
  • Partner Offers
  • Contact
  • Book Appointment
Menu
  • Home
  • About
  • Services
  • Calculators
  • Testimonials
  • Partner Offers
  • Contact
  • Book Appointment
  • Home
  • About
  • Services
  • Calculators
  • Testimonials
  • Partner Offers
  • Contact
  • Book Appointment
Menu
  • Home
  • About
  • Services
  • Calculators
  • Testimonials
  • Partner Offers
  • Contact
  • Book Appointment

BUsiness info

Contact

1300 346 482

email

info@finhub.net.au

Address

GPO BOX 359 SYDNEY NSW 2001

SCHEDULE AN APPOINTMENT
BOOK APPOINTMENT direct to BROKER CALENDER
payment methods finhub
  • Secure Payments

Terms & Conditions . Privacy Policy, Complaints & Feedback

© 2021. Finance Hub & Networks - Made with

  • by Digital Recipe

Credit Representative Number: 369168 is authorised under Australian Credit Licence 389328
Company: Finance Hub and Networks Pty Ltd | Trading Name: Finance Hub and Networks
ABN 70 644 141 613 | ACN 644 141 613

Group 1391
Group 1390
Group 1387
home-v2-hero-img

Looking to refinance?

Interests rates as low as 5.24% Variable Rate+ $4000 * cashback bonus

Close BT

Secure your family’s future by saving interest on your mortgage. We work with a network of the nation’s top lenders to help you find the right deal.

Learn More