RBA's rate rise biggest in two decades

Many homeowners are facing a significant increase in mortgage rates after the Reserve Bank lifted the cash rate by 50 basis points. It's the biggest rate rise in more than two decades and coincides with sharply rising gas and electricity prices, leaving many struggling.

Source: AAP

The latest increase in interest rates is likely to send a shiver down the spine of many home-owners and buyers.  Coupled with rising electricity and gas prices, many will be facing a tough winter.  There are around 3.5 million home owners across Australia, many of whom will be immediately affected by the interest rate increase from 0.35 per cent, to 0.85 per cent.  It's the largest rate rise since the year 2000, and just one of a handful of times the rate has risen since.