Finance Minister says Australians were ‘prepared’ for an interest rate hike
Federal Finance Minister Simon Birmingham says he believes many mortgage holders have been preparing for a hike in the interest rate.
For an average $600,000 loan, it will see an increase of around $100 per month.
He admits interest rate rises aren’t “welcomed” by mortgage holders.
“Certainly for those who have mortgages we understand their concerns,” he told Scott Emerson.
“I know that many Australians have been preparing for this, because they understood that these interest rates at a RBA cash rate of 0.1 per cent was the lowest its ever been … many Australians knew that wasn’t going to last forever and that’s why there’s been a doubling of fixed rate mortgages in Australia.”
He refused to comment on what the interest rate rise could soar to, saying he respects the independence of the RBA.
Senator Birmingham says many Australians put more money towards paying down their mortgages.
But Scott says it gives no comfort to Australians feeling the pinch of the rising cost of living.
“I think most home lenders and borrowers in Australia will have thought carefully about the settings, knowing full well interest rates couldn’t remain where they were, that’s why many planned for it in terms of shifting to fixed, or paid down their mortgages sooner.”
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