MP outlines families’ rate rise hardship

By Rebecca Fraser
CASEY homeowners are going to be among the hardest hit in Australia following last week’s 0.25 per cent interest rate rise, according to Holt MP Anthony Byrne.
Mr Byrne said the Reserve Bank announcement would mean that on average families living in Narre Warren would now be paying an extra $37 a month on a mortgage of $228,000.
Cranbourne residents, with an average mortgage of $201,150, could face an increase of $33 a month, Hampton Park residents an increase of $31 a month, and Endeavour Hills homeowners, with a median priced home, would face an increase of $39 a month.
Mr Byrne said the interest rate rise was a huge blow to hardworking families living in the Holt electorate, which encompasses many Casey suburbs.
He said the rise was the second increase in 14 months and would affect families living in Holt the most as the electorate had the highest rate of mortgages in Australia.
“This interest rate hike comes at a time when families are already being hit with record petrol prices as well as massive increases in the cost of education, private health insurance and child care,” Mr Byrne.
Mr Byrne said the interest rate rise, the high cost of fuel and expected increase in the price of groceries, would also raise the demands on community based organisations.
Manager of the Casey North Community Information and Support Service Susan Naden Magee said the interest rate increase would have an impact on her agency and young families throughout Casey.
“Increases to interest rates will place further financial pressure on households already battling to make ends meet and place further demands on our already stretched resources.
“The service currently assists approximately 300 families each month with programs such as financial counselling, emergency relief and crisis support,” said Mrs Naden Magee.
“Coupled with the constant rising costs of fuel, areas such as Casey that have a high population of young families will certainly feel the effects of this extra financial burden,” said Mrs Naden Magee.
First time homeowners Chantal Benbow and Clint Henshaw moved into their Narre Warren home last week just days after the interest rate announcement.
The couple purchased their home last December in a bid to access the State Government’s $5000 first home bonus before it was cut by $2000 at the end of last year.
They both said the interest rate rise was bad timing and they were disappointed by the increase.
They said they were yet to be told how much their payments would increase by.
Ms Benbow said the added cost meant they would have less money each month and would have to wait a bit longer to carry out improvements to their new home.