$20 isn?t much, but only if you have it
By HUGH KEARNEY
TRACII Lauder is expecting to hear from her bank any day now.
Since Wednesday the young West Tweed mother of two and her husband Caine have been wondering just how the latest rise in interest rates will affect their already heavy mortgage repayments.
Blaming inflationary risks, the Reserve Bank of Australia on Wednesday lifted official interest rates by a quarter of one percentage point, the first such rise since March last year.
It is widely expected banks will quickly pass on the rate rise to their customers, like the Lauders, in full.
Yesterday Ms Lauder was at home with sons Codi (4) and Milo (3) while husband Caine was off at his concreting job, wondering if the interest-rate rise would mean more financial hardship for her young family.
The Lauders used to rent at Chinderah, but two years ago made the big decision to take out a loan and buy their own home.
"We knew it was big financial commitment but we wanted to get our own place mainly for the kids sake," she said.
"We are paying about all we can afford.
"I have been told that for a loan the size of ours the repayments could go up by $20 a week."
To bring as much money as possible into the household, Ms Lauder works at a Tweed private nursing home.
But even with two incomes, she said, it was a constant struggle to make ends meet.
"We don't have many luxuries as it is, but if we have to find an extra $20 we will have to make some choices," she said.
"Twenty dollars is about two days petrol for us, but we have to drive so something else might have to go.
"It doesn't sound much but we will have to watch every cent we spend and look for every saving possible."