‘I’ll drive trucks on a Sunday if I have to’: Homeowners face rising mortgage repayments

James Dalglish bought his first home just two weeks ago but is already facing higher repayments after the Reserve Bank raised the cash rate on Tuesday, the first interest rise since 2010.

The 30-year-old construction worker paid $645,000 for the house in Frankston, in Melbourne’s south-east, and says he is “relieved” but not happy the bank made a conservative increase in the officialJames Dalglish and partner Kimberly Mattuchio with children Carter and Archi in front of their newly purchased home.“It’s still disappointing, especially if you add the rise of living costs,” he said.

Dalglish and his young family have a variable mortgage of $520,000 with repayments of about $2000 a month. When their bank passes on the rate rise, this, which is manageable, but he says the prospect of further increases is “a pretty scary thought”. Dalglish and his fiancée Kimberly Mattuchio went to three banks, including CBA and Macquarie, before settling on Beyond Bank for their home loan, with their interest rate currently sitting at 2.49 per cent.As a construction worker, Dalglish makes between $100,000 and $150,000 annually but says the increase in cost of living “stings” for the young family’s budget. Mattuchio recently had a child and is not working while she studies to become a nurse.

Dalglish currently works full time, six days a week and commutes over 50 kilometres for work. If interest rates continue to rise, he says selling isn’t an option. He will do what he can to make the repayments.He plans to vote Labor in the upcoming election, crediting theCut through the noise of the federal election campaign with news, views and expert analysis from Jacqueline Maley.

paid too much?.

Same with anyone else who has a home loan with a variable mortgage James, get used it.

It’s the same risk that has always been a part of borrowing.

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