A 2 % rate rise may drain more than $500 from some homeowners monthly budget

According to Whitsunday Times,  homeowners may be  paying more than $500 extra a month to pay their mortgage if the official cash rate hits two percentage points. This is in case inflation is not brought under control.

Analysis by PropTrack stated that amongst the 377 suburbs across the state, a 2 per cent rise would drain more than $500 from the monthly budget. While  106 suburbs are facing the prospect of finding an extra $1000-plus a month.

This is right after the Reserve Bank of Australia (RBA) lifted the official cash rate from 0.1 to 0.35 per cent on Tuesday, the first increase in 11 years, with experts divided on just how high it will go.

PropTrack economist Angus Moore stated that there had been a record-setting record number of cashed-up interstate buyers moving to the state during the pandemic, forcing locals to compete at higher prices in Queensland.

Read more in this Whitsunday Times news here.