‘Don’t wait’: RBA warning for homeowners

As Aussies continue to struggle with increasing mortgage stress, homeowners are keeping a keen eye on the RBA’s upcoming cash rate decision on December 9.

NSW remains the country’s most unaffordable state, with mortgage repayments taking up over one third of the average income for a median priced home, according to PropTrack.

As inflation rose to 3.8 per cent in October, Compare the Market spokesperson Sarah Orr has warned that homeowners should not wait for further rate cuts before reviewing their home loans.

“Despite mortgage repayments being a major stress, we know there are still people out there that haven’t shopped around for a better deal this year,” Ms Orr said.

“And now with inflation on the rise, there’s a slim chance the RBA will deliver relief in the form of a rate cut any time soon.”

Ms Orr said there could be as much as a 0.50 per cent difference between some advertised rates.

“Aussies may be able to effectively create their own rate cut by shopping around,” she said.

“So don’t wait for the RBA to act – see if you can wrangle a better deal for yourself.”

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According to Ms Orr, even with a 20 per cent deposit on a median Sydney home, monthly repayments could be more than $5,600, which she said was “a huge amount of money for most people.”

Compare the Market’s Household Budget Barometer found that around nine per cent of people surveyed in NSW said they were in mortgage arrears.

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And, Mr Orr added, it is not just mortgages causing stress for NSW households.

“Average home and contents quotes in Sydney climbed 22.2 per cent, or $611 year-on-year, now averaging $3,364,” she said.

“That’s higher than any capital in the country.”

The rising costs of other bills are also eating away at household savings.

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According to Compare the Market, NSW motorists spend an average $2,904 a year on fuel, while NSW residents spend just over $10,000 a year on groceries.

Electricity bills, Compare the Market report, can cost between $1,965 and $2,741 a year for households on the default market offer in some regions.

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