Homeowners face another increase in their mortgage repayments after the Reserve Bank of Australia (RBA) raised its official cash rate by 25 basis points to 4.25 per cent on 04/06/2010. The cash rate has not been this high since February 2009.
The 0.25% rise will add around $49.05 per month to repayments on an average mortgage of $300,000 with a loan term of 30 years, assuming the big four banks match the move.
The National Australia Bank (NAB) said on Monday that it had no plans to raise its standard variable rate higher than a move by the RBA.
Commonwealth Bank of Australia (CBA) is the first major Australian bank to pass on the Reserve Bank of Australia’s (RBA) interest rate rise to borrowers, lifting its standard variable rate (SVR) on mortgages by 25 basis points to 7.11 percent.
The SVR for mortgages offered by the major banks now stands at 7.26 per cent at Westpac, 7.16 per cent at ANZ, 7.11 per cent at CBA, and 6.99 at NAB.
Housing Industry Association (HIA) says the Reserve Bank of Australia’s (RBA) decision to lift interest rates will reduce the chances of a sustained recovery in the building of new homes and thus will push the house prices to a new high point.
The RBA had lifted interest rates five times in seven months, pushing up standard monthly repayments for home buyers with a $300,000 mortgage with a loan term of 30 years by $250.49 per month.