Homeowners and residents in Western Australia feel the squeeze ahead of a possible rate hike

Australians are bracing for another interest rate increase as residents across regional Western Australia share how rising costs are hitting their daily lives. The Reserve Bank is expected to meet and potentially raise rates for the fifth time this year.

The Financial Strain

In Geraldton, 27-year-old Liam Bristow bought a house six months ago and says his mortgage has already gone up by $90 a fortnight. The extra pressure has stopped him from saving money and forced him to look for a housemate. He has also cut back on hobbies like four-wheel driving and working on his car, noting he now lives pay cheque to pay cheque. Nearby, Roy Mckay is homeless and relies on a $600 fortnightly payment from Centrelink, stating that high prices for groceries and petrol make it very hard to survive.

Mixed Views

Not everyone views the rate hikes the same way. Laura and Gavin Anderson do not own a home and hope to move to Perth by the end of next year. They are happy about rising interest rates for now because they hope it will push property prices down and help them buy a home. Even so, day-to-day costs have impacted them, forcing them to cut back to just one coffee out a week instead of three. Further north in Wickham, Connie and Aaron Curtis moved from Sydney with their young family two years ago and say they can no longer cut back on anything else. Karratha retail worker Annie Duffy, who has a mortgage, calls the ongoing rate increases scary because they keep happening repeatedly.

Context

Interest rate decisions by central banks directly influence home loan repayments for mortgage holders across the country. When rates go up, homeowners face higher monthly or fortnightly costs, which often leads to reduced spending on non-essential items and tighter household budgets.