Loan repayments to go up tomorrow

An interest rate rise on Tuesday, 1st of December will not cool the red hot property market say agents. The Reserve bank of Australia is expected to raise rates again this week by a further 0.25 per cent, taking the official cash rate to 3.75 per cent.

Robert Larocca from the real estate Institute of Victoria said buyers had already priced in a number of interest rate rises because they knew that rates could not stay at emergency low levels forever.

For a typical $200,000 home loan the extra 0.25 per cent rate rise would add about $31 to monthly repayments. On a $300,000 loan the extra repayments would be about $47, while on a $400,000 loan the repayments would be $62.23.

Source: Herald Sun