on Friday to discuss ways to protect consumers from high electricity prices just days after the Reserve Bank hit mortgage holders with the eighth straight interest rate rise on Tuesday.
If the RBA was to deliver another 0.75 per cent worth of rate rises in the early stages of 2023 to take the official rate to 3.85 per cent, the average monthly mortgage payment would hit $3393, up from $2335 at the start of May this year.says that by the middle of calendar 2023, total mortgage payments as a percentage of household income are set to reach a record high of about 28 per cent, breaking the previous record set in 2008.
But as Toohey points out, it’s the combination of rising costs that will really hurt households in the months ahead. “In times of rising economic uncertainty households tend to initially lift their saving rate. They do not decrease it.”