Rate Rise 'double Blow' For Families

Newcastle Herald

Wednesday March 5, 2008

GR

BANKS are refusing

to rule out raising

variable home loan

rates by more than

yesterday's increase in

the official cash rate.

The Reserve Bank

of Australia (RBA)

raised the official

cash rate by 0.25 per

cent to a 12-year high

of 7.25 per cent.

It also lifted rates

last month.

"Today's news is a

double blow for the

family budget," Prime

Minister Kevin Rudd

said.

"Two rate rises will

hurt working families."

The RBA's 12th

consecutive increase

since May 2002 will

add about $51 to the

monthly repayment on

a $300,000 mortgage.

Warabrook couple

Tivon Ostowari and

Amanda Morphett,

whose interest rate

is higher than the

standard variable

rate under their

deal with a mortgage

provider,

are feeling the

squeeze.

"It's really

hard living

week-to-week

and no chance

to save" Ms

Morphett said.

- Details, reaction,

Pages 4, 5

WHAT YOU'LL PAY

Monthly increase

$100,000 .......................$17.16

$150,000 .......................$25.74

$200,000 .......................$34.32

$250,000 .......................$42.90

FULL TABLE: PAGE 4

© 2008 Newcastle Herald

Back to News Index | Back to Home