Aussie f**ked borrowers who failed to see that interest rates were bound to rise are well and truly schlonged. These fools bought into one of the world’s most insane speculative housing bubbles – now it’s starting to dawn on them how screwed they are.
Interest rates are well and truly on the rise – and a graph shows a horror market prediction for homeowners over the next year.
Homeowners could be paying an extra $12,000 a year in mortgage payments if interest rates rise in line with market expectations.
Yesterday the Reserve Bank of Australia (RBA) announced a 0.5 percentage point increase to the cash rate, bringing it to 1.35 per cent. In total, interest rates have risen by 1.25 percentage points since May.
Ahead of the move, the Commonwealth Bank hiked its fixed rate by a whopping 1.40 percentage points, a figure that shocked analysts and revealed the bank expects interest rates to rise substantially.