Your interest rate update: July 2023
On 04 July the official cash rate held at:
The lowest investor loan in Finder's database is:
With this rate, assuming the average investor home loan size of $557,201 you would be making monthly repayments of:
The lowest investment loan rate is AMP Bank's Essential Home Loan.
A welcome hold - but don't get comfortable
Borrowers breathed a sigh of relief at the start of July when the Reserve Bank of Australia (RBA) announced it would hold the official cash rate at 4.10%. The rate has risen by 4% since the RBA began its offensive against inflation in May 2022.
This has seen the average borrower repayment increase by about $1,200 a month.
According to Finder's Consumer Sentiment Survey in June, more than 40% of Australians are struggling to pay their home loan. 4 in 5 Australians had faced a mortgage increase over the past year.
Unfortunately, economists aren't expecting that the latest hold is a sign that the cash rate has peaked.
4 in 5 experts that Finder surveyed ahead of the RBA decision believe the cash rate will peak between July and November. Predictions vary between 1 or 2 more hikes in that time.
There is positive news though: the inflation figure, which the RBA is trying to get back within the 2-3% range, looks to be dropping. Inflation from May 2022 to May 2023 grew by 5.6%, the lowest increase since April last year.