Rising interest rates adds pressure to cost of living for Victorian home owners
Posted On May 4, 2022
Rising cost of living pressures and now rising interest rates are putting the heat on new home owners across the country.
It comes as the big four banks all passed on the first Reserve Bank hike today, the first time in more than a decade.
Home owner and new mum, Nidhi Rekhi said the rising pressures were already stripping the family budget.
She said her family had to change a lot of things in terms of living expenses.
“We limited our eating out, going out shopping… and travelling… and we had to basically cut our expenses wherever we can,” she said.
“The other expenses we had to limit so we could plan for the upcoming future.
“We have had to change a lot of things in terms of living expenses.”
Ms Rekhi however counts herself lucky, after she secured a two-year fixed rate on her mortgage.
“We just moved into our house, having a new born, there are increased expenses,” she said.
“We have planned and we have to plan for the future and it’s a tough situation at the moment.
“We very lucky to be on a fixed-term rate right now.
“Obviously in the back of the mind we are worried what thing will be coming on board after two years… when we are going back to normal, not the fixed one.”
ANZ chief executive Shayne Elliott said interest rates would likely rise again.
“Now we’re looking at a period that it seems likely, globally, interest rates will be on the rise for a period,” he said.
“That’s quite new for a lot of our customers.”
The moment the RBA pulled the trigger, it was a domino effect for the big four banks.
With all four match the 0.25 increase by 7am this morning.
It’s a brave new world for new home buyers bracing for a stressful journey.