Mortgage holders could face yet another increase to their loan repayments this month, if the Reserve Bank of Australia raises the cash rate as expected on Tuesday.
Subscribe now for unlimited access.
or signup to continue reading
Of the 36 financial experts and economists surveyed by comparison website Finder, 35 said they were confident the cash rate would increase.
Almost two thirds (23 out of 36) of those surveyed predicted another increase of 50 basis points, which would bring the official cash rate to 2.35 per cent.
It would mark the fifth consecutive month the RBA has increased the cash rate.
Tim Reardon, chief economist at the Housing Industry Association, was the only expert who predicted the RBA will hold the cash rate.
"November will allow the RBA to see one more [consumer price index] data print before their next upward move," he said.
"It will also give them some more time to see the impact of their cash rate hikes to date."
Sarah Hunter, partner and senior economist, KPMG Australia, said the RBA would be weighing up an increase this month to curb inflation.
"The RBA will be conscious of the need for further increases in the cash rate to tame these pressures, and an increase of at least 25 [basis points] is a near-certainty; the board could choose to increase by 40 [basis points] (to return the cash rate to its pre-COVID increments), but a 50 [basis points] increase looks marginally more likely," she said.
Looking ahead, 25 out of 36 experts expected the RBA to make no change to the cash rate in October.
$252 extra each month
Data provided to ACM by Canstar shows how much extra Canberra home owners could pay if a 50 basis point rate rise is passed on by their bank in full.
Based on a median house value of $1,047,912, a home owner with an 80 per cent loan-to-value ratio could pay $252 more each month.
Richard Whitten, money expert at Finder, said a fifth consecutive cash rate rise would be a "tough burden" for many households.
"Mortgage repayments are already significantly higher than what they were earlier this year," he said.
"Borrowers who took out fixed rate home loans before the rate rises started won't notice a difference straight away, but they'll get a real shock once that rate stops and they are looking at a fixed-rate cliff."
We've made it a whole lot easier for you to have your say. Our new comment platform requires only one log-in to access articles and to join the discussion on The Canberra Times website. Find out how to register so you can enjoy civil, friendly and engaging discussions. See our moderation policy here.