Hunter homeowners hurting

 BY EMILY WILLIAMS

Homeowners in the Hunter have suffered another blow, with the Reserve Bank of Australia (RBA) raising interest rates for the twelfth time since May last year.

The official cash-rate has jumped 25 basis points to 4.1%, the highest it has been in 11 years.

The RBA argues they had no choice but to increase the official rate, because inflation remains stubbornly high.

The jump means the average monthly mortgage repayment in Newcastle and Lake Macquarie will rise to $4,464. 

Governor of the RBA, Philip Lowe. Image:Matt Jelonek/AAP

Business Hunter CEO says he is also concerned for Hunter businesses.

"The increase in the interest rate might cause customers, or the community, to keep their hands in their pockets and reduce their spending further, which obviously has a flow-on impact to many of the businesses across the region," he said.

The cost of living crisis continues to affect those living in the Hunter.

New Report Paints Dire Picture for Hunter Mortgages

BY LAUREN FREEMANTLE

Wallsend has been identified in a report placing it in the top ten suburbs across NSW experiencing mortgage stress.

The number of households in stress - defined as when net income does not cover ongoing costs - is currently sitting at 996,000 households in the country and is expected to reach 1 million by Christmas.

Of those, 38,000 households are located in the Hunter, according to the Digital Finance Analytics group.

In our region, Wallsend families were deemed to be struggling the most, with 5906 households, or 53.1% living in the 2297 postcode experiencing mortgage stress.

They were followed by Rutherford, Edgeworth and Woodberry.

Wallsend MP Sonia Hornery is calling on the NSW Government to do more to reduce cost of living pressures.

"We need to address this problem, and we need to address it by the state government putting pressure on utility firms, working with the federal government about the cost of fuel, and lowering those prices so people can remain in Wallsend with mortgages," Ms Hornery said.

"Without government intervention, we'll see more and more people relying on charity to get by."

Shadow Treasurer Ryan Park has written to the Australian Banking Association demanding members take a sympathetic view of the stress individuals may be under.

He's urging anyone under financial pressure to make an appointment with their bank to discuss what options are available before it's too late.

The report comes as Sydney law firm Slater and Gordon prepare to launch the nation's biggest ever class action against the Big Four banks, representing as many as 1 in 3 Australian workers who've invested their super as cash but have seen it funnelled into parent companies not offering the best interest rates available.

It's estimated a win in the class action would cost the financial institutions a collective $1 billion.

Image: Bendigo Advertiser.